California Code of Regulations › Title 17 - Public Health › Division 2 - Health and Welfare Agency-Department of Developmental Services Regulations › Chapter 3 - Community Services › Subchapter 9 - Rate-Setting Methodology for Community-Based Day Programs › Article 1 - Permanent Payment Rates › Section 57515 - Step Six: Adjusting the Amount Computed in Step Five by the Upper and Lower Limit of the Allowable Range of Rates

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Step six in the process of determining a
					 permanent payment rate is to adjust the amount computed in step five, section
					 57514, by the upper and lower
					 limit of the allowable range of rates:
(1) For
					 Fiscal Year 1997-98, and each alternate fiscal year thereafter, the upper and
					 lower limit adjustment shall be computed as follows:
(A) For vendors whose amount, as determined
					 in step five, is within the allowable range of rates, the Department shall make
					 no change to that amount;
(B) For
					 vendors whose amount, as determined in step five, is above the upper limit of
					 the allowable range of rates, the Department shall reduce that amount to the
					 upper limit;
(C) For vendors whose
					 amount, as determined in step five, is below the lower limit of the allowable
					 range of rates, the Department shall increase the amount to the lower limit,
					 based upon available funds pursuant to (a)(1)(C)1. through 3.
1. The amount of available funds to increase
					 amounts computed in step five shall be determined as follows:
a. Multiply each vendor's reduction computed
					 pursuant to (1)(B) by their consumer attendance identified in section
					 57433(b)(2)(B) or
					 (3)(D);
b. Add the amount computed in a. for each
					 vendor to determine the total available funds from the upper limit reduction
					 pursuant to (1)(B); and
c. Add to
					 the amount determined in b. any gap funding appropriated pursuant to the Budget
					 Act, for those vendors specified in section
					 57810(a)(1)(A) and
					 (B).
2. The amount of funds needed to increase
					 amounts computed in step five to the lower limit, shall be determined as
					 follows:
a. Determine the difference between,
					 the lower limit and each vendor's amount as computed in step five;
b. Multiply the difference computed in a. by
					 consumer attendance identified in section
					 57433(b)(2)(B) or
					 (3)(D); and
c. Add the amounts computed in b. to
					 determine the total amount of needed funds.
3. The total amount of available funds, as
					 determined in (C)1., shall be compared to the total amount of funds needed, as
					 determined in (C)2.
a. If there are sufficient
					 funds to fully fund the lower limit increase, the Department shall increase
					 amounts computed in step five to the lower limit.
b. If there are insufficient funds to fully
					 fund the lower limit increase, the Department shall adjust the difference
					 computed in (C)2.a. by the percentage of available funds. The Department shall:
(1.) Calculate the percentage of available
					 funds, by dividing the total amount of available funds computed in (C)1.c. by
					 the total amount of funds needed computed in (C)2.c.;
(2.) Multiply the percentage of available
					 funds, by the difference computed in (C)2.a. for each vendor; and
(3.) Increase amounts computed in step five
					 by the amount computed in
					 (C)3.b.(2.).