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 2 - Plant Cost Component › Section 12VAC30-90-31 - New nursing facilities and bed additions

Current through Register Vol. 40, No. 24, July 15, 2024
A. Providers shall be required to obtain
						three competitive bids when (i) constructing a new physical plant or renovating
						a section of the plant when changing the licensed bed capacity, and (ii)
						purchasing fixed equipment or major movable equipment related to such projects.
All bids must be obtained in an open competitive market
						  manner, and subject to disclosure to DMAS prior to initial rate setting.
						  (Related parties see
						  12VAC30-90-51.)
B. Reimbursable costs for building
						and fixed equipment shall be based upon the 75th percentile square foot costs
						for NFs published annually in the R.S. Means Building Construction Cost Data as
						adjusted by the appropriate R.S. Means Square Foot Costs "Location Factor" for
						Virginia for the locality in which the NF is located. Where the specific
						location is not listed in the R.S. Means Square Foot Costs "Location Factor"
						for Virginia, the facility's zip code shall be used to determine the
						appropriate locality factor from the U.S. Postal Services National Five Digit
						Zip Code for Virginia and the R.S. Means Square Foot Costs "Location Factors."
						The provider shall have the option of selecting the construction cost limit
						which is effective on the date the Certificate of Public Need (COPN) is issued
						or the date the NF is licensed. Total cost shall be calculated by multiplying
						the above 75th percentile square foot cost by 385 square feet (the average per
						bed square footage). Effective July 1, 2007, the construction cost limit for
						children's ICF/MR facilities having 50 or more beds shall be calculated using
						up to 750 square feet per bed. Total costs for building additions shall be
						calculated by multiplying the square footage of the project by the applicable
						components of the construction cost in the R.S. Means Square Foot Costs, not to
						exceed the total per bed cost for a new NF. Reasonable limits for renovations
						shall be determined by the appropriate costs in the R.S. Means Repair and
						Remodeling Cost Data, not to exceed the total R.S. Means Building Construction
						Cost Data 75th percentile square foot costs for NFs. 12VAC30-90-28, Mid-year
						fair rental value rate determination, provides cost documentation requirements
						for new and renovated nursing homes.
C. New NFs and bed additions to existing NFs
						must have prior approval under the state's Certificate of Public Need Law and
						Licensure regulations in order to receive Medicaid reimbursement.
D. However in no case shall allowable
						reimbursed costs exceed 110% of the amounts approved in the original COPN, or
						100% of the amounts approved in the original COPN as modified by any
						"significant change" COPN, where a provider has satisfied the requirements of
						the State Department of Health with respect to obtaining prior written approval
						for a "significant change" to a COPN which has previously been issued (see
						12VAC5-220-10 et
						seq.).
Statutory Authority: §
														32.1-325
							 of the Code of Virginia;
							 42 USC §
															1396 et
							 seq.