1. (a) Each NF shall maintain accurate financial and statistical records, which substantiate the cost reports, for a period of 6 years.

2. (b) The records of the NF described in (a) above shall include, but not be limited to, information regarding:

   1. (1) NF ownership, organization, operation, fiscal, and other record keeping systems;
   2. (2) Federal and state income tax information related to the operation of the NF;
   3. (3) Asset acquisition, lease, sale, or other action;
   4. (4) Franchise or management arrangement;
   5. (5) Patient service charge schedule;
   6. (6) Information regarding cost of operation and amounts of income received; and
   7. (7) Flow of funds and working capital.
3. (c) When the department determines that an NF is not maintaining records as required in He-E 806.03 (a) and (b) above, the department shall send a written notice to the NF of its intent to suspend payments in 30 days, together with an explanation of the deficiencies.
4. (d) If the NF disagrees with the department’s decision, the NF may request an appeal pursuant to He-E 806.41.
5. (e) Payments shall remain suspended until adequate records are maintained as specified in (a) and (b) above, or until an appeal decision is rendered pursuant to He-E 806.41.
6. (f) Payments shall be reinstated at the full rate retroactive to the beginning of the suspension period once the NF maintains adequate records in accordance with He-E 806 or if an appeal decision is rendered pursuant to He-E 806.41 in favor of the NF.
7. (g) NFs shall make the records described in (a) and (b) above available upon request to representatives of the department or the US Department of Health and Human Services, subject to the penalties described in (e) above.

Source. #8547, eff 1-24-06 (formerly He-W 593.06); ss by #10474, eff 1-24-14; ss by #14020, eff 7-10-24