North Dakota Administrative Code › Title 75 - Department of Human Services › Article 75-02 - Economic Assistance › Chapter 75-02-07.1 - Ratesetting for Basic Care Facilities › Section 75-02-07.1-09 - Cost allocations

Current through Supplement No. 393, July, 2024
1. Direct costing
				of allowable costs must be used whenever possible. For a facility that cannot
				direct cost, the following allocation methods must be used:
a. If a facility is combined with other
				residential or health care facilities, except for a nursing facility, the
				following allocation methods must be used:
(1) Resident care salaries that cannot be
				reported based on actual costs must be allocated using time studies. Time
				studies must be conducted at least semiannually for a two-week period or
				quarterly for a one-week period. Time studies must represent a typical period
				of time when employees are performing normal work activities in each of their
				assigned areas of responsibilities. Allocation percentages based on the time
				studies must be used starting with the next pay period following completion of
				the time studies or averaged for the report year. The methodology used by the
				facility may not be changed without approval by the department. If time studies
				are not completed, resident care salaries must be allocated based on revenues
				for resident services.
(2)
				Salaries for a director or supervisor of resident care or licensed health care
				professionals that cannot be reported based on actual costs or time studies
				must be allocated based on resident care salaries, licensed health care
				professional salaries or full-time equivalents of resident care staff, or
				licensed health care professional staff.
(3) Salaries for cost center supervisors must
				be allocated based on cost center salaries or full-time equivalents of
				supervised staff.
(4) Other
				resident care costs must be allocated based on resident days.
(5) Dietary and food costs must be allocated
				based on the number of meals served or in-house resident days.
(6) Laundry costs must be allocated on the
				basis of pounds of laundry or in-house resident days.
(7) Activity costs must be allocated based on
				in-house resident days.
(8) Social
				service costs must be allocated based on resident days.
(9) Housekeeping costs must be allocated
				based on weighted square footage.
(10) Plant operation costs must be allocated
				based on weighted square footage.
(11) Medical records costs must be allocated
				based on the number of admissions or discharges and deaths.
(12) Pharmacy costs for consultants must be
				allocated based on in-house resident days.
(13) Administration costs must be allocated
				on the basis of the percentage of total adjusted cost, excluding property,
				administration, chaplain, and utility costs, in each facility.
(14) Property costs must be allocated first
				to a cost center based on square footage. The property costs allocated to a
				given cost center must be allocated using the methodologies set forth in this
				section for that particular cost center.
(15) Chaplain costs must be allocated based
				on the percentage of total adjusted costs, excluding property, administration,
				and chaplain.
(16) Employment
				benefits must be allocated based on the ratio of salaries to total
				salaries.