Kansas Administrative Regulations › Agency 129 - KANSAS DEPARTMENT OF HEALTH AND ENVIRONMENT-DIVISION OF HEALTH CARE FINANCE › Article 10 - ADULT CARE HOME PROGRAM › Section 129-10-23a - Nonreimbursable costs

Current through Register Vol. 43, No. 28, July 11, 2024
(a) Costs not
			 related to resident care, as set forth in K.A.R. 30-101a, shall not be
			 considered in computing reimbursable costs. In addition, the following expenses
			 or costs shall not be allowed:
(1) Fees paid
			 to nonworking directors and the salaries of nonworking officers;
(2) uncollectable debts, which are also known
			 as "bad debts";
(3) donations and
			 contributions;
(4) fund-raising
			 expenses;
(5) taxes, as follows:
(A) Federal income and excess profit taxes,
			 including any interest or penalties paid on these taxes;
(B) state or local income and excess profits
			 taxes;
(C) taxes from which
			 exemptions are available to the provider;
(D) taxes on property that is not used in
			 providing covered services;
(E)
			 taxes levied against any resident and collected and remitted by the provider;
(F) self-employment taxes
			 applicable to individual proprietors, partners, or members of a joint venture;
			 and
(G) interest or penalties paid
			 on federal and state payroll taxes;
(6) insurance premiums on lives of owners and
			 related parties;
(7) the imputed
			 value of services rendered by nonpaid workers and volunteers;
(8) utilization review not related to quality
			 assurance;
(9) costs of social,
			 fraternal, civic, and other organizations that concern themselves with
			 activities unrelated to their members' professional or business activities;
(10) accrued expenses that are not
			 liquidated within 180 days after the end of the cost reporting period;
(11) vending machines and related
			 supplies;
(12) board of director
			 costs;
(13) resident personal
			 purchases;
(14) advertising for
			 resident utilization;
(15) public
			 relations expenses;
(16)
			 penalties, fines, and late charges;
(17) prescription drugs as defined in K.A.R.
			 30-10-1a;
(18) dental services;
(19) radiology;
(20) lab work;
(21) items or services provided only to
			 non-Kansas medical assistance program residents and reimbursed from third-party
			 payors;
(22) automobiles and
			 related accessories in excess of $25,000.00 each. Buses and vans for resident
			 transportation shall be reviewed for reasonableness and may exceed $25,000.00
			 in costs;
(23) provider-owned or
			 related party-owned, -leased, or -chartered airplanes and related expenses;
(24) bank overdraft charges or
			 other penalties;
(25) personal
			 expenses not directly related to the provision of longterm resident care in a
			 nursing facility;
(26) management
			 fees paid to a related organization that are not clearly derived from the
			 actual cost of materials, supplies, or services provided directly to an
			 individual nursing facility;
(27)
			 business expenses not directly related to the care of residents in a long-term
			 care facility. These expenses shall include business investment activities,
			 stockholder and public relations activities, and farm and ranch operations;
(28) legal and other costs
			 associated with litigation, unless the litigation is decided in the provider's
			 favor and is directly related to Kansas nursing facility operations;
(29) lobbying expenses and political
			 contributions.