WAC 388-96-748
Financing allowance component rate
allocation. (1) Beginning July 1, 1999, for each medicaid
nursing facility, the department will establish a financing
allowance component rate allocation. The financing allowance
component rate allocation will be rebased annually, effective
July 1st, in accordance with this chapter and chapter 74.46 RCW.
(2) The department will determine the financing allowance
component rate allocation by:
(a) Multiplying the net invested funds of each nursing
facility by the applicable factor identified in subsection (3)
of this section; and
(b) Dividing the sum of the products by the greater of:
(i) A nursing facility's total resident days from the
most recent cost report period; or
(ii) Resident days calculated on eighty-five percent
facility occupancy.
(3)(a) The multiplication factor required by subsection
(2) (a) of this section is determined by the acquisition date
of the tangible fixed asset(s). For each nursing facility,
the department will multiply the net invested funds for assets
acquired:
(i) Before May 17, 1999 by a factor of .10; and/or
(ii) On or after May 17, 1999 by a factor of .085.
(b) The department will apply the factor of .10 to the
net invested funds pertaining to new construction or major
renovations:
(i) That received certificate of need approval before May
17, 1999;
(ii) That received an exemption from certificate of need
requirements under chapter 70.38 RCW before May 17, 1999; or
(iii) for which the nursing facility submitted working
drawings to the department of health for construction review
before May 17, 1999.
(c) For a new contractor as defined under WAC 388-96-026
(1)(c), assets acquired from the former contractor will retain
their initial acquisition dates when determining the new
contractor's financing allowance under this section.
[Statutory Authority: Chapter 74.46 RCW, 1999 c 376 § 3
amending c 309 § 207. 99-24-084, § 388-96-748, filed
11/30/99, effective 12/31/99.]