Effective for fiscal years ending June 30, 1984 and later, the following maximum compensation for owners and/or their relatives employed by an individual skilled care facility or by a parent company whose subsidiary or division participates in the Medicaid Skilled Care Program shall apply.

1. (1) MAXIMUM COMPENSATION FOR OWNERS AND/OR THEIR RELATIVES EMPLOYED IN AN INDIVIDUAL SKILLED NURSING FACILITY.

   1. (a) Administrator: Base Amount Per In To A Bed Size Allowance Each Bed Excess of Maximum of 25 or under $15,824 $-- $15,824 26 - 50 16,129 305.33 26 beds 23,457 51 - 75 23,741 283.29 51 beds 30,540 76 - 100 30,672 132.75 76 beds 33,858 101 - 150 33,922 61.96 101 beds 36,958 151 & above 37,019 61.96 151 beds 46,363
   2. (b) Other Positions: 1 - 50 51- 100 101- 150 151 & Above Beds Beds Beds Beds Assistant or Co-Administrator $---- $20,471 $21,135 $22,020 Bookkeeper 13,611 15,824 17,483 19,143 Licensed Dietician 18,590 19,254 19,807 20,913 Dietary Supervisor 12,282 13,832 15,270 16,818 Dietary Worker 11,286 11,286 11,286 11,286 Housekeeping 11,618 12,946 14,052 15,381 Supervisor Housekeeper 11,286 11,286 11,286 11,286 Laundry Supervisor --- --- 13,611 14,052 Laundry & Linen 11,286 11,286 11,286 11,286 Worker Maintenance Man 15,381 15,381 15,381 15,381 Medical Director 26,114 26,114 26,114 26,114 Director of Nursing 21,244 22,130 23,457 26,114 Registered Nurse 19,585 20,249 20,913 21,909 Licensed Practical Nurse 15,159 15,824 16,265 16,818 Speech, Occupational, Physical, Recreational Therapist 20,913 20,913 20,913 20,913 Attendants, Orderlies, Aides 12,282 12,282 12,282 12,282 Recreational Director Activity Coordinator Social Activities Director 12,835 12,835 12,835 12,835 Medical Records Clerk 13,832 14,385 14,938 15,381 Secretary 16,045 16,045 16,045 16,045
   3. (c) The above are maximum limits of allowable compensation to owners and/or relatives who are actually performing these duties 100% of a normal work week. Part-time performance will be computed on percentage of time spent.
   4. (d) If the facility has under 51 beds, only one (1) Administrator and/or Business Manager is allowed, and the rate is set according to bed size/Administrator table.
   5. (e) Allowances for any position not specifically listed herein will be based on other comparable positions and other available information.
   6. (f) Allowances for any position shall not exceed the administrator’s compensation.

   7. (g) Other items of consideration to be used in adjustments to these maximum allowances are:

      1. 1. necessity of services provided and duties performed by the individual,
      2. 2. the time period during which these duties were performed,
      3. 3. accounting period bed changes based on dates of change,
      4. 4. other relevant circumstances and data verified by the Comptroller of the Treasury.
   8. (h) Allowable compensation amounts shown above will be adjusted annually effective with cost reports ending June 30 and later based on the preliminary Skilled Nursing Facility Market Basket Index as computed by Health Care Financing Administration, Office of the Actuary, Division of National Cost Estimate, current as of June 30, but in no case will the annual compensation adjustment exceed 10%.

2. (2) MAXIMUM COMPENSATION FOR OWNERS AND/OR THEIR RELATIVES EMPLOYED BY PARENT COMPANIES WHOSE SUBSIDIARY OR DIVISION PARTICIPATES IN THE MEDICAID SKILLED NURSING PROGRAM

   1. (a) Chief Operating Executive: Base Amount Per In To A Bed Size Allowance Each Bed Excess of Maximum of 200 & Under $21,688 $--- --- $21,688 201 500 21,703 15.49 201 beds 26,335 501 1,000 26,349 14.61 501 beds 33,638 1,001 2,000 33,652 14.27 1,001 beds 47,912 2,001 & over 47,925 13.49 2,001 beds 125,479
   2. (b) Other Positions Allowance as % of Chief Operating Executive Compensation Maximum Medical Director (M.D.) 90% Assistant Chief Operating Executive, Controller, Corporate Secretary, Treasurer, Attorney 75% Allowance as % of Chief Operating Executive Compensation Maximum Accountant, Business Manager, Purchasing Agent, Regional Administrator, Regional ice President, Regional Executive 70% $28,437 Consultants, (Social Activities, Dietary (R.D.), Physical Therapist (RPT), Medical Records (RRA), Nursing (B.S.R.N.) 65% 22,794 Secretaries/Clerks 16,045 Bookkeepers 19,143 The above are maximum limits of allowable cost for owners and/or relatives who are actually performing these duties 100% of a normal work week. Part-time performance will be computed according to time spent.
   3. (c) No assistant operating executive will be authorized for a chain with 200 beds or less.
   4. (d) If chief operating executive is a licensed administrator and is actually performing the duties of administrator in one of the facilities, those owner/administrator guidelines will apply.

   5. (e) Other items of consideration to be used in adjustments to these maximum allowances:

      1. 1. services provided to the facilities by home office,
      2. 2. positions filled and duties performed by other personnel in the home office compared to related positions and duties performed by other personnel in the individual facilities,
      3. 3. comparable salaries that would have to be paid to nonowners for the same services,
      4. 4. accounting period bed changes based on dates of change, and
      5. 5. Other relevant circumstances and data verified by the Comptroller of the Treasury.
   6. (f) Allowable compensation amounts will be adjusted annually using the same percentage that is developed under rule 1200-13-8-.09(1)(h).

Authority: T.C.A. §§4-5-202, 71-5-105, and 71-5-109. Administrative History: Original rule filed March 7, 1989; effective April 21, 1989.