California Code of Regulations › Title 17 - Public Health › Division 2 - Health and Welfare Agency-Department of Developmental Services Regulations › Chapter 3 - Community Services › Subchapter 21 - Habilitation Services Program › Article 8 - Ratesetting Methodology for Work Activity Programs › Section 58876 - Rate Adjustment and Rate Revision Provisions

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) The Department shall adjust base rates
					 following the addition of any State-approved COLA's except as provided in
					 Section 58876(g)(7) and
					 58876(p).
(b) The Department shall make rate
					 adjustments only before the payment year begins and make them effective July 1
					 of the payment year, except in cases of occupancy adjustments due to disasters
					 such as earthquakes, floods, and fires pursuant to Section
					 58877.
(c) If the basis for the adjustment will not
					 take effect until after the beginning of the payment year, the Department shall
					 prorate the adjustment over the entire payment year effective July 1.
(d) In all cases the vendor shall actually
					 incur the cost to be eligible for a rate adjustment.
(e) Documentation submitted by a vendor as
					 the basis for an adjustment shall be subject to Departmental review and
					 Departmental and/or regional center audit, as well as to all policies and
					 procedures pertaining to such reviews and audits.
(f) No rate adjustment shall result in a rate
					 exceeding the approved maximum daily rate for the vendor based on vendor
					 grouping pursuant to section
					 58873(a) through
					 (h).
(g) The Department shall take into account,
					 as a basis for a rate adjustment, increases in occupancy cost (limited to rent,
					 lease, mortgage interest, and building depreciation) from the historical period
					 to the payment period, only if all of the following apply:
(1) The increase in rent, lease, mortgage
					 interest, and/or building depreciation for the payment year exceeds the
					 corresponding cost(s) in the historical period;
(2) The increased cost:
(A) Resulted in needed and more normalized or
					 improved services to consumers and was approved in writing by the Department
					 before it was incurred; or
(B) Was
					 unavoidable, such as loss of lease or disaster, and the replacement vendor
					 site, or portion thereof, was obtained at a cost consistent with the average
					 cost paid for buildings in the area; or
(3) The vendor submits the request for
					 adjustment in writing prior to July 1 of the payment year, except in cases of
					 disasters such as earthquakes, floods, and fires, and in the form required by
					 the Department;
(4) The vendor
					 shall complete a Request for Rate Adjustment B Occupancy on a form specified by
					 the Department and submit it to the Department with a copy to the vendoring
					 regional center prior to July 1 of the payment year for which the adjustment is
					 being requested, except in the case of disaster when the form shall be
					 submitted before new occupancy commitments are made;
(5) If the cost increase meets all of the
					 requirements specified in (g)(1) through (3) above, the Department shall deduct
					 that amount from the historical period cost, and use the difference to compute
					 the rate adjustment;
(6) If space
					 utilization differs from that of the historical period, the vendor shall submit
					 a Space Utilization Report, Form DS 1950 (3/05) Tab B, as a basis for
					 distribution of the increased costs. If there is no change, the costs shall be
					 distributed as in the historical period;
(7) The Department shall use all historical
					 consumer data to calculate the adjustment for the payment year. However,
					 because costs are payment year costs, no COLA increases shall be applied in the
					 year of the adjustment.