Section 29-6513. EXCLUSIONS FROM ALLOWABLE COSTS

 

6513.1The following categories of expense shall be excluded from allowable operating costs because they are not normally incurred in providing resident care:

 

(a)Fund raising expenses in excess of ten percent (10%) of the amount raised;

 

(b)Parties and social activities not related to resident care;

 

(c)Personal telephone, radio, and television services;

 

(d)Gift, flower and coffee shop expenses;

 

(e)Vending machines;

 

(f)Interest expenses and penalties due to late payment of bills or taxes, or for licensure violations; and

 

(g)Prescription drug costs.

 

6513.2The following expenditures shall reduce allowable costs:

 

(a)The greater of the revenues generated from employee and guest meals or the cost of the meals;

 

(b)The greater of the revenues generated from rental space in the facility or the cost of the rental space:

 

(c)Purchase discounts and allowances;

 

(d)Investment income for unrestricted funds to the extent that it exceeds interest expense on investments;

 

(e)Recovery of an insured loss:

 

(f)Grants, gift and income from endowments designated by the donor for specific operating expenses; and

 

(g)Any other income or expense item determined to reduce allowable costs pursuant to the Medicare Principles of Reimbursement.

 

source

Final Rulemaking published at 53 DCR 1370 (February 24, 2006).