Alabama Administrative Code › Title 560 - ALABAMA MEDICAID AGENCY › Chapter 560-X-60 - PROVIDER BASED RURAL HEALTH CLINIC REIMBURSEMENT › Section 560-X-60-.03 - Definitions

Current through Register Vol. 42, No. 9, June 28, 2024
(1)
Accrual Method of Accounting
- Revenues must be
			 allocated to the accounting period in which they are earned and expenses must
			 be charged to the period in which they are incurred. This must be done
			 regardless of when cash is received or disbursed.
(2) Chapter - This Chapter (Chapter Sixty) of
			 the Alabama Medicaid Agency Administrative Code.
(3)
Costs Not Related to Patient
			 Care
- Costs not related to patient care are costs which are not
			 appropriate or necessary and proper in developing and maintaining the operation
			 of efficiently operated patient care facilities and activities. Such costs are
			 not allowable in computing reimbursable costs.
(4)
Costs Related to Patient
			 Care
- These include all necessary and proper costs which are
			 appropriate and helpful in developing and maintaining the operation of patient
			 care facilities and activities.
(5)
Cost Report
- When used in this Chapter, means the
			 document that was developed by the Alabama Medicaid Agency to report costs,
			 charges, and revenues of the Provider Based Rural Health Clinics.
(6)
Covered Costs
-
			 Allowable direct and indirect costs that are reasonable and necessary in
			 rendering covered health care services. To be recognized, costs (as indicated
			 in the State Plan) must be identified in auditable accounting records and
			 allocated on a reasonable basis between the delivery of covered type services
			 and all other clinic activities.
(7)
Depreciation
-
			 That amount which represents a portion of the depreciable asset's cost or other
			 basis which is allocable to a period of operation.
(8)
Fair Market
			 Value
- The bona fide price at which an asset would change hands
			 or at which services would be purchased between a willing buyer and a willing
			 seller, neither being under any compulsion to buy or sell and both having a
			 reasonable knowledge of the relevant facts.
(9)
Fiscal Year
-
			 The 12 month period upon which providers are required to report their costs,
			 also called the reporting period.
(10)
Fringe Benefits
- Fringe benefits are amounts paid to, or on behalf of, an employee, in
			 addition to direct salary or wages, and from which the employee or his
			 beneficiary derives a personal benefit before or after the employee's
			 retirement or death.
(11)
Full Time Equivalents (FTE)
- The result of a
			 calculation which determines the average number of employees per position
			 working the customary work week full time.
(12)
CMS
- The
			 Centers for Medicate & Medicaid Services, an agency of the U. S. Department
			 of Health and Human Services.
(13)
Home Office Costs
- See Rule
			 560-X-60-.10 for the in-depth
			 discussion and treatment of home office costs.
(14)
Interest
- Cost
			 incurred for the use of borrowed funds.
(a)
Necessary Interest
- Incurred to satisfy a financial
			 need of the provider on a loan made for a purpose directly related to patient
			 care. Necessary interest cannot include loans resulting in excess funds or
			 investments.
(b)
Proper
			 Interest
- Must be necessary as described above, incurred at a
			 rate not in excess of what a prudent borrower would have to pay in the money
			 market at the time the loan was made, and incurred in connection with a loan
			 directly related to patient care or safety.