North Dakota Administrative Code › Title 75 - Department of Human Services › Article 75-02 - Economic Assistance › Chapter 75-02-06 - Ratesetting for Nursing Home Care › Section 75-02-06-12.1 - Nonallowable costs

Current through Supplement No. 393, July, 2024
Costs not related to resident care are costs not appropriate
				  or necessary and proper in developing and maintaining the operation of resident
				  care facilities and activities. These costs are not allowed in computing the
				  rates. Nonallowable costs include:
1.
				Political contributions;
2.
				Salaries or expenses of a lobbyist;
3. Advertising designed to encourage
				potential residents to select a particular facility;
4. Fines or penalties, including interest
				charges on the penalty, bank overdraft charges, and late payment
				charges;
5. Legal and related
				expenses for challenges to decisions made by governmental agencies except for
				successful challenges as provided for in section
				75-02-06-02.5;
6. Costs incurred for activities directly
				related to influencing employees with respect to unionization;
7. Cost of memberships in sports, health,
				fraternal, or social clubs or organizations, such as elks, country clubs, or
				knights of columbus;
8. Assessments
				made by or the portion of dues charged by associations or professional
				organizations for lobbying costs, contributions to political action committees
				or campaigns, or litigation, except for successful challenges to decisions made
				by governmental agencies (including all dues unless an allocation of dues to
				such costs is provided);
9.
				Community contributions, employer sponsorship of sports teams, and dues to
				civic and business organizations, i.e., lions, chamber of commerce, or kiwanis,
				in excess of one thousand five hundred dollars per cost reporting
				period;
10. Home office costs not
				otherwise allowable if incurred directly by the facility;
11. Stockholder servicing costs incurred
				primarily for the benefit of stockholders or other investors that include
				annual meetings, annual reports and newsletters, accounting and legal fees for
				consolidating statements for security exchange commission purposes, stock
				transfer agent fees, and stockholder and investment analysis;
12. Corporate costs not related to resident
				care, including reorganization costs; costs associated with acquisition of
				capital stock, except otherwise allowable interest and depreciation expenses
				associated with a transaction described in subsection 3 of section
				75-02-06-07;
				and costs relating to the issuance and sale of capital stock or other
				securities;
13. The full cost of
				items or services such as telephone, radio, and television, including cable
				hookups or satellite dishes, located in resident accommodations, excluding
				common areas, furnished solely for the personal comfort of the
				residents;
14. Fundraising costs,
				including salaries, advertising, promotional, or publicity costs incurred for
				such a purpose;
15. The cost of any
				equipment, whether owned or leased, not exclusively used by the facility except
				to the extent that the facility demonstrates, to the satisfaction of the
				department, that any particular use of equipment was related to resident
				care;
16. Costs, including, by way
				of illustration and not by way of limitation, legal fees, accounting and
				administrative costs, travel costs, and the costs of feasibility studies,
				attributed to the negotiation or settlement of the sale or purchase of any
				capital assets, whether by sale or merger, when the cost of the asset has been
				previously reported and included in the rate paid to any hospital or
				facility;
17. Costs incurred by the
				provider's subcontractors, or by the lessor of property that the provider
				leases, that are an element in the subcontractor's or lessor's charge to the
				provider, if the costs would not have been allowable had the costs been
				incurred by a provider directly furnishing the subcontracted services, or
				owning the leased property except no facility shall have a particular item of
				cost disallowed under this subsection if that cost arises out of a transaction
				completed before July 18, 1984;
18.
				The cost, in excess of charges, of providing meals and lodging to facility
				personnel living on premises;
19.
				Depreciation expense for facility assets not related to resident
				care;
20. Nonnursing facility
				operations and associated administration costs;
21. Direct costs or any amount claimed to
				Medicare for Medicare utilization review costs;
22. All costs for services paid directly by
				the department to an outside provider, such as prescription drugs;
23. Travel costs involving the use of
				vehicles not exclusively used by the facility except to the extent:
a. The facility supports vehicle travel costs
				with sufficient documentation to establish that the purpose of the travel is
				related to resident care;
b.
				Resident-care related vehicle travel costs do not exceed a standard mileage
				rate established by the internal revenue service; and
c. The facility documents all costs
				associated with a vehicle not exclusively used by the facility;