1. (1) Multiple use facilities, such as hospital-nursing facilities or retirement home-nursing facilities, will allocate all allowable costs which are not directly associated with a specific revenue producing department.

2. (2) Examples of costs which are usually allocated include, but are not limited to:

   1. (a) Depreciation.
   2. (b) Administrative and General.
   3. (c) Employee Health and Welfare.
   4. (d) Plant Operations.
   5. (e) Laundry and Linen.
   6. (f) Housekeeping.
   7. (g) Medical Records.
   8. (h) Dietary.
   9. (i) Social Services.
   10. (j) Pharmacy.

3. (3) Examples of revenue-producing departments are:

   1. (a) Retirement Home.
   2. (b) Nursing Facility.
   3. (c) Hospital Facility.

4. (4) Certain cost items must be identified and allocations of those items to various cost centers must be adjusted so that the total cost allocated will be reported on the specific cost report lines as applicable. These costs are:

   1. (a) Medical Records Cost.
   2. (b) Consultant Fees.
   3. (c) Medical Directors Fees.
   4. (d) Depreciation Expense.
   5. (e) Interest Expense.
   6. (f) Property Taxes & Insurance.
   7. (g) Raw Food.

Author: Susan Mims

Statutory Authority: State Plan; Title XIX, Social Security Act; 42 C.F.R. §§447.200 - .272, et seq.

History: Rule effective October 1, 1982. Amended effective October 1, 1990. Emergency rule effective September 12, 1991. Amended effective December 12, 1991.