New York Codes, Rules and Regulations › Title 14 - DEPARTMENT OF MENTAL HYGIENE › Chapter XXI - OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES › Part 841 - Medical Assistance for Chemical Dependence Services › Section 841.12 - Capital costs

Current through Register Vol. 46, No. 28, July 10, 2024
(a) This section
				shall apply to programs with Medicaid reimbursement calculated pursuant to this
				Part.
(b) No program or service
				governed by this Part shall have its own facility specific or program specific
				capital add-on. Instead, capital costs from submitted cost reports shall be
				reviewed by the Office and a regional, and not separately identifiable, capital
				component shall be built into the operating fees. Such fees shall constitute
				payment in full for all costs of operating the program, including capital
				costs, unless otherwise specified.
(c) Allowable Costs.
(1) Allowable capital costs means the costs
				to a program operated by an applicant with respect to the acquisition of real
				property estates, interests, and cooperative interests in realty, their design,
				construction, reconstruction, rehabilitation and improvement, original
				furnishings and equipment, site development, and appurtenances of a facility
				and as otherwise identified in this Title.
(2) Unless otherwise specified in this Part,
				costs of ownership of real property shall be allowable in the following
				categories; depreciation, interest, and closing costs on the purchase and
				financing of real property, including fees related to loans from the Dormitory
				Authority of the State of New York (DASNY). Providers should not report costs
				that were not actually incurred by the provider (e.g., debt service or fees on
				DASNY loans that were paid by the State of New York or refunded to the provider
				by the State of New York).
(3)
				Costs related to Dormitory Authority loans shall be allowable, unless otherwise
				paid by the State of New York, as follows:
(i)
				Interest cost accruing from Dormitory Authority mortgage loans pursuant to
				subdivision 13-d of section 5 of the Facilities Development Corporation Act,
				net of the portion of such interest cost attributable to operating costs, is an
				allowable cost. That portion of the interest cost attributable to allowable
				start-up costs is also allowable. That portion of the loan principal that is
				attributable to depreciable or amortizable costs, under the rules of HIM 15, is
				an allowable cost and shall be reimbursed as depreciation or amortization in
				accordance with any requirements and conditions. Any portion of the loan
				principal that is attributable to costs that are not depreciable or amortizable
				under the rules of HIM 15 is not allowable for reimbursement.
(ii) Fees imposed by the office and annual
				administrative fees imposed by the Dormitory Authority in connection with
				Dormitory Authority mortgage loans shall be allowable costs.
(iii) Interest payments on Dormitory
				Authority loans pursuant to this subdivision for capital indebtedness and
				start-up costs will be considered allowable where such interest expense results
				from approved capital indebtedness and/or start-up costs in accordance with
				this Title.
(iv) Interest payment
				on Dormitory Authority loans pursuant to the provisions of this Part are
				allowable in excess of the amount associated with the outstanding principal
				balance prior to refinancing only if the purpose of the additional debt is to
				acquire assets to be used for care of the persons served by the program and all
				other applicable requirements of this Part are met.
(v) The Office may recoup, in full or in
				part, the interest and fee reimbursement for DASNY loans attributable to a
				particular service. The office may also recoup, in full or in part, the annual
				depreciation or amortization reimbursement for costs financing through DASNY
				mortgage loans. The amount of Dormitory Authority mortgage loan interest, fee,
				depreciation, and amortization recoupments shall be equal to or less than the
				provider's actual reimbursement for such costs. In no case shall these
				recoupments exceed such reimbursement.