1. (a) The Department will set a limit on the resident care peer group price for each nursing facility for each year, using the NIS database as specified in § 1187.91 (relating to database), to the lower of:

   1. (1) The nursing facility resident care peer group price.
   2. (2) One hundred three percent of the nursing facility’s average case-mix neutralized resident care cost per diem plus 30% of the difference between the 103% calculation and the nursing facility resident care peer group price.

2. (b) The Department will set a limit on the other resident related peer group price for each nursing facility for each base year, using the NIS database as specified in § 1187.91 to the lower of:

   1. (1) The nursing facility other resident related peer group price.
   2. (2) One hundred three percent of the nursing facility average other resident related cost per diem plus 30% of the difference between the 103% calculation and the nursing facility other resident related peer group price.

Cross References

This section cited in 55 Pa. Code § 1187.95 (relating to general principles for rate and price setting); and 55 Pa. Code § 1187.96 (relating to price-setting and rate-setting computations).