1. (a) Step two in the process of determining a permanent payment rate is to compute an amount for each vendor within the group of like programs, based on allowable costs and direct service hours. For each vendor, the Department shall compute an amount by:

   1. (1) Determining the total allowable costs as follows:

      1. (A) Add together the total costs reported by the vendor pursuant to section 58034;
      2. (B) Subtract from the amount computed in (A) the amount of any non-allowable costs specified in section 58036, which were identified by the Department or vendoring regional center during their review of the information submitted by the vendor; and

      3. (C) For vendors who agreed to a negotiated level of payment , as specified in Section 57300(d), and whose temporary payment rate is being converted to a permanent payment rate, or whose permanent payment rate is being established, the Department shall increase the amount computed in (B) by:

         1. 1. Subtracting the total amount of the actual regional center payments which the vendor received for services provided during the reporting period, as reported pursuant to Section 58039(a)(1), from the maximum amount of the regional center payment which the vendor would have received during the reporting period, as reported pursuant to Section 58039(a)(2); and
         2. 2. Adding the amount computed in 1. or the total amount of cost reductions reported pursuant to Section 58039(b), whichever is less, to the amount computed in (B).
   2. (2) Dividing the total allowable costs computed in (1) by the vendor's actual direct service hours pursuant to section 58033 (b) .

   3. (3) Increasing or decreasing, if applicable, the amount computed in (2) for any of the following that has occurred from July 1 through September 30 following the reporting period, and which have not been included in the total allowable costs reported by the vendor:

      1. (A) Increase the amount computed in (2) by the amount of any COLA authorized in the Budget Act for the fiscal year following the reporting period;
      2. (B) Increase the amount computed in (2) by the amount of any rate increase granted by the Department, as a result of a rate adjustment pursuant to sections 58420 through 58424, and/or audit adjustment pursuant to section 58430, and/or rate appeal pursuant to sections 58440 through 58448; and/or
      3. (C) Decrease the amount computed in (2) by the amount of any rate decrease issued by the Department, as a result of a rate adjustment pursuant to sections 58420 through 58424, and/or audit adjustment pursuant to section 58430, and/or rate appeal pursuant to sections 58440 through 58448.

Note: Authority cited: Chapter 722, Statutes of 1992, Section 147; and Sections 4690.2 and 4791(i), Welfare and Institutions Code. Reference: Sections 4690.2, 4691, 4691.5 and 4791, Welfare and Institutions Code.

History

1. New section filed 6-26-90 as an emergency; operative 7-1-90 (Register 90, No. 36). A Certificate of Compliance must be transmitted to OAL by 10-29-90 or emergency language will be repealed by operation of law on the following day.

2. Certificate of Compliance as to 6-26-90 order transmitted to OAL 9-28-90 and filed 10-29-90 (Register 90, No. 46).

3. New subsections (a)(1)(C)-(C)2. and amendment of subsections (a)(1)(A)-(B) and Note filed 8-6-92; operative 8-6-92 (Register 92, No. 33).

4. Amendment of section filed as an emergency 6-17-93; operative 6-17-93. Submitted to OAL for printing only pursuant to SB485 (Chapter 722, Statutes of 1992) Section 147(a) (Register 93, No. 26).

5. Certificate of Compliance as to 6-17-93 order transmitted to OAL 6-20-94 and filed 8-2-94 (Register 94, No. 31).