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 75-02-06-02.6 - 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 a hospital
				or has more than one license (including basic care), the following allocation
				methods must be used:
(1) Nursing 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, nursing salaries must be allocated based on
				revenues for resident services.
(2) Salaries for a director of nursing or
				nursing supervisors that cannot be reported based on actual costs or time
				studies must be allocated based on nursing salaries or full-time equivalents of
				nursing staff.
(3) Salaries for
				cost center supervisors must be allocated based on cost center salaries or
				full-time equivalents of supervised staff.
(4) Staff development or inservice trainer
				salaries must be allocated to nursing and therapies based on the ratio of
				nursing and therapy salaries to total salaries, to non-long-term care based on
				the ratio of non-long-term care salaries to total salaries, and to
				administration based on the ratio of total salaries less nursing salaries,
				therapy salaries, and non-long-term care salaries to total salaries.
(5) Other nursing costs must be allocated
				based on resident days.
(6)
				Therapy costs, other than therapy salaries and purchased services, must be
				allocated based on the ratio of therapy salaries and purchased services in the
				nursing facility to total therapy salaries and purchased services.
(7) Dietary and food costs must be allocated
				based on number of meals served or in-house resident days.
(8) Laundry costs must be allocated on the
				basis of pounds of laundry or in-house resident days.
(9) Activity costs must be allocated based on
				in-house resident days.
(10)
				Social service costs must be allocated based on resident days.
(11) Housekeeping costs must be allocated
				based on weighted square footage.
(12) Plant operation costs must be allocated
				based on weighted square footage.
(13) Medical records costs must be allocated
				based on the number of admissions or discharges and deaths.
(14) Pharmacy costs for consultants must be
				allocated based on in-house resident days.
(15) 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.
(16) 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.
(17) Chaplain costs must be allocated based
				on the percentage of total adjusted costs, excluding property, administration,
				chaplain, and utility costs.
(18)
				Employment benefits must be allocated based on the ratio of salaries to total
				salaries.