New Mexico Administrative Code › Title 8 - SOCIAL SERVICES › Chapter 313 - LONG TERM CARE SERVICES - INTERMEDIATE CARE FACILITIES › Part 3 - COST RELATED REIMBURSEMENT OF ICF-MR FACILITIES › Section 8.313.3.7 - DEFINITIONS

Current through Register Vol. 35, No. 13, July 16, 2024
A.
Accrual
				basis of accounting:
Under the accrual basis of accounting, revenue is
				recorded in the period when it is earned, regardless of when it is collected.
				The expenditures for expense and asset items are recorded in the period in
				which they are incurred, regardless of when they are paid.
B.
Cash basis of accounting:
Under the cash basis of accounting, revenues are recognized only when cash is
				received and expenditures for expense and asset items are not recorded until
				cash is disbursed for them.
C.
Governmental institution:
A provider of services owned and
				operated by a federal, state or local governmental agency.
D.
Allocable costs:
An item or
				group of items of cost chargeable to one or more objects, processes, or
				operations in accordance with cost responsibilities, benefits received, or
				other identifiable measure of application or consumption.
E.
Applicable credits:
Those
				receipts or types of transactions which offset or reduce expense items that are
				allocable to cost centers as direct or indirect costs. Typical examples of such
				transactions are: purchase discounts, rebates, or allowances; recoveries or
				indemnities on losses; sales of scrap or incidental services; adjustments of
				over-payments or erroneous charges; and other income items which serve to
				reduce costs. In some instances, the amounts received from the federal
				government to finance hospital activities or service operations should be
				treated as applicable credits.
F.
Charges:
The regular rates established by the provider for
				services rendered to both medicaid recipients and to other paying patients
				whether inpatient or outpatient. The rate billed to the HCA shall be the usual
				and customary rate charged to all patients.
G.
Cost finding:
A determination
				of the cost of services by the use of informal procedures, i.e., without
				employing the regular processes of cost accounting on a continuous or formal
				basis. It is the determination of the cost of an operation by the allocation of
				direct costs and the proration of indirect costs.
H.
Cost center:
A division,
				department, or subdivision thereof, a group of services or employees or both,
				or any other unit or type of activity into which functions of an institution
				are divided for purposes of cost assignment and allocations.
I.
General service cost centers:
Those cost centers which are operated for the benefit of other general service
				areas as well as special or patient care departments. Examples of these are:
				housekeeping, laundry, dietary, operation of plant, maintenance of plant, etc.
				Costs incurred for these cost center are allocated to other cost centers on the
				basis of services rendered.
J.
Special service cost centers:
Commonly referred to as ancillary
				cost center. Such centers usually provide direct identifiable services to
				individual patients, and include departments such as the physical therapy and
				supply departments.
K.
Inpatient cost centers
: Cost centers established to accumulate
				costs applicable to providing routine and ancillary services to inpatients for
				the purposes of cost assignment and allocation.
L.
Provider:
The entity
				responsible for the provision of services. The provider must have entered into
				a valid agreement with the medicaid program for the provision of such
				services.
M.
Facility:
The actual physical structure in which services are provided.
N.
Owner:
The entity holding
				legal title to the facility.