North Dakota Administrative Code › Title 75 - Department of Human Services › Article 75-02 - Economic Assistance › Chapter 75-02-09 - Ratesetting for Psychiatric Residential Treatment Facilities › Section 75-02-09-01 - Definitions

Current through Supplement No. 393, July, 2024
1. "Accrual basis" means the recording of revenue in the
				  period when it is earned, regardless of when it is collected, and the recording
				  of expenses in the period when incurred, regardless of when they are paid.
2. "Adjustment factor" means the inflation rate for
				  psychiatric residential treatment facility services used to develop the
				  legislative appropriation for the department for the applicable rate year.
3. "Allowable cost" means the facility's actual and
				  reasonable cost after adjustments required by department rules.
4. "Cost category" means the classification or grouping of
				  similar or related costs for purposes of reporting which are used in the
				  determination of cost limitations and rates.
5. "Cost report" means the department-approved form for
				  reporting costs, statistical data, and other relevant information to the
				  department.
6. "Department" means the department of human services.
7. "Depreciation" means an allocation of the cost of an asset
				  over its estimated useful life.
8. "Desk rate" means the rate established by the department
				  based upon the cost report.
9. "Education" means the cost of activities related to
				  academic and vocational training generally provided by a school district.
10. "Facility" means an entity that is a licensed psychiatric
				  residential treatment facility for children under chapter 75-03-17.
11. "Fair market value" means value at which an asset could
				  be sold in the open market in a transaction between informed, unrelated
				  parties.
12. "Final rate" means the rate established after any
				  adjustments by the department, including adjustments resulting from cost report
				  reviews and audits.
13. "Fringe benefits" means workers' compensation insurance,
				  group health, dental or vision insurance, group life insurance, payment toward
				  retirement plans, uniform allowances, employer's share of Federal Insurance
				  Contributions Act, unemployment compensation taxes, and medical services
				  furnished at facility expense.
14. "Generally accepted accounting principles" means the
				  accounting principles approved by the American institute of certified public
				  accountants.
15. "In-house day" means a day that an individual was
				  actually residing in the facility and was not on leave.
16. "Interest" means cost incurred for the use of borrowed
				  funds.
17. "Leave day" means any day that an individual is not in
				  the facility but is expected to return to the facility.
18. "Private-pay resident" means an individual on whose
				  behalf the facility is not receiving medical assistance payments.
19. "Rate year" means the twelve-month period beginning the
				  seventh month after the end of a facility's fiscal year.
20. "Reasonable cost" means the cost that must be incurred by
				  an efficiently and economically operated facility to provide services in
				  conformity with applicable state and federal laws, rules, and quality and
				  safety standards. Reasonable cost takes into account that the facility seeks to
				  minimize its costs and that its actual costs do not exceed what a prudent and
				  cost-conscious buyer pays for a given item or service.
21. "Related organization" means an organization that a
				  facility is, to a significant extent, associated with, affiliated with, able to
				  control, or controlled by; and which furnishes services, facilities, or
				  supplies to the facility. Control exists when an individual or organization has
				  the power, directly or indirectly, to significantly influence or direct the
				  policies of an organization or facility.
22. "Report year" means the facility's fiscal year.
23. "Resident day" means a day for which service is actually
				  provided or for which payment is ordinarily sought.
24. "Special rate" means a desk rate or a final rate adjusted
				  for nonrecurring or initial costs not included in the historical cost basis.
General Authority: NDCC
					 50-24.1-04
Law Implemented:
					 42 USC
					 1396
					 a(a)(30)(A)