(1) The kidney disease treatment center must demonstrate positive net income by the third full year of operation.
- (a) The calculation of net income is a subtraction of all operating and nonoperating expenses, including appropriate allocated and overhead expenses, amortization and depreciation of capital expenditures from total revenue generated by the kidney disease treatment center.
- (b) Existing facilities. Revenue and expense projections for existing kidney disease treatment centers must be based on that center's current payor mix and current expenses.
(c) New facilities.
- (i) Revenue projections must be based on the net revenue per treatment of the applicant's three closest kidney disease treatment centers.
- (ii) Known expenses must be used in the pro forma income statement. Known expenses may include, but are not limited to, rent, medical director agreement, and other types of contracted services.
- (iii) All other expenses not known must be based on the applicant's three closest kidney disease treatment centers.
- (iv) If an applicant has no experience operating kidney disease treatment centers, the department will use its experience in determining the reasonableness of the pro forma financial statements provided in the application.
- (v) If an applicant has one or two kidney disease treatment centers, revenue projections and unknown expenses must be based on the applicant's operational centers.
- (2) An applicant proposing to construct finished treatment floor area square footage that exceeds the maximum treatment floor area square footage defined in WAC 246-310-800(11) will be determined to have an unreasonable impact on costs and charges and the application will be denied. This does not preclude an applicant from constructing shelled space.
[Statutory Authority: RCW 70.38.135, 2023 c 48, and RCW 70.38.280. WSR 24-18-006, § 246-310-815, filed 8/22/24, effective 9/22/24. Statutory Authority: RCW 70.38.135. WSR 17-04-062, § 246-310-815, filed 1/27/17, effective 1/1/18.]