Virginia Administrative Code › Title 12 - HEALTH › Agency 30 - DEPARTMENT OF MEDICAL ASSISTANCE SERVICES › Chapter 90 - METHODS AND STANDARDS FOR ESTABLISHING PAYMENT RATES FOR LONG-TERM CARE › Part II - Nursing Home Payment System › Subpart II - Rate Determination Procedures › Article 3 - Fair Rental Value Capital Payment System › Section 12VAC30-90-38 - Schedule of assets reporting

Current through Register Vol. 40, No. 24, July 15, 2024
A.
						For the calculation of facility average age, the department shall use a
						"schedule of assets" that lists, by year of acquisition, the allowable
						acquisition cost of facilities' assets, including land improvements, buildings
						and fixed equipment, and major movable equipment. This schedule shall be
						submitted annually by the provider on forms to be provided by the department,
						and shall be audited by the department. The principles of reimbursement for
						plant cost described in Article 2 (12VAC30-90-30 et seq.) of this
						subpart shall be used to determine allowable cost.
B. The schedule of assets used in the
						calculation of average age shall be submitted with the provider's cost
						report.
C. Facilities failing to
						submit the schedule of assets timely shall have their nursing facility per diem
						rate set to zero.
D. Capital
						expenditures are to be included on the schedule of assets. These do not include
						land purchases, but do include land improvements, renovations, additions,
						upgrading to new standards, and equipment purchases. Capital expenditures shall
						be capital related expenditures costing $50,000 or more each, in aggregate for
						like items, or in aggregate for a particular project. For facilities with 30 or
						fewer beds, an amount of $25,000, rather than $50,000, shall apply. The limits
						of $50,000 and $25,000 shall apply only to expenditures after July 1, 2000. For
						these purposes, like items means those items acquired within a 12-month period
						that are classified in one of the categories of land improvements, building
						improvements, or movable equipment. Additionally, capital-related expenditures
						that are part of a particular project may be included on the schedule of assets
						for the cost reporting that is after the date the assets have been placed into
						service, whether all the required $50,000 threshold of costs of the ongoing
						project have been incurred as of the reporting date.
E. Items reportable on the schedule of assets
						may be removed only when disposed of.
F. Acquisition costs related to any sale or
						change in the ownership of a nursing facility or the assets of a nursing
						facility shall not be included in the schedule of assets if the transaction
						occurred after June 30, 2000. Whether such a transaction is the result of a
						sale of assets, acquisition of capital stock, merger, or any other type of
						change in ownership, related costs shall not be reported on the schedule of
						assets.
G. In addition to verifying
						the schedule of assets, audits of NF allowable capital costs shall continue to
						be performed in accordance with regulations described in Article 2.
Statutory Authority
§ 32.1-325 of the Code of Virginia.