1997 Minnesota Statutes

     256B.47 Nonallowable costs; notice of increases to 
  private paying residents; allocation of costs. 

    Subdivision 1.    Nonallowable costs.  The following 
 costs shall not be recognized as allowable:  (1) political 
 contributions; (2) salaries or expenses of a lobbyist, as 
 defined in section 10A.01, subdivision 11, for lobbying 
 activities; (3) advertising designed to encourage potential 
 residents to select a particular nursing facility; (4) 
 assessments levied by the commissioner of health for uncorrected 
 violations; (5) legal and related expenses for unsuccessful 
 challenges to decisions by governmental agencies; (6) 
 memberships in sports, health or similar social clubs or 
 organizations; (7) costs incurred for activities directly 
 related to influencing employees with respect to unionization; 
 and (8) direct and indirect costs of providing services which 
 are billed separately from the nursing facility's payment rate 
 or pursuant to Minnesota Rules, parts 9500.0750 to 9500.1080.  
 The commissioner shall by rule exclude the costs of any other 
 items not directly related to the provision of resident care. 

    Subd. 2.    Notice to residents.  No increase in nursing 
 facility rates for private paying residents shall be effective 
 unless the nursing facility notifies the resident or person 
 responsible for payment of the increase in writing 30 days 
 before the increase takes effect.  

    A nursing facility may adjust its rates without giving the 
 notice required by this subdivision when the purpose of the rate 
 adjustment is to reflect a necessary change in the level of care 
 provided to a resident.  If the state fails to set rates as 
 required by section 256B.431, the time required for giving 
 notice is decreased by the number of days by which the state was 
 late in setting the rates. 

    Subd. 3.    Allocation of costs.  To ensure the 
 avoidance of double payments as required by section 256B.433, 
 the direct and indirect reporting year costs of providing 
 residents of nursing facilities that are not hospital attached 
 with therapy services that are billed separately from the 
 nursing facility payment rate or according to Minnesota Rules, 
 parts 9500.0750 to 9500.1080, must be determined and deducted 
 from the appropriate cost categories of the annual cost report 
 as follows: 

    (a) The costs of wages and salaries for employees providing 
 or participating in providing and consultants providing services 
 shall be allocated to the therapy service based on direct 
 identification.  

    (b) The costs of fringe benefits and payroll taxes relating 
 to the costs in paragraph (a) must be allocated to the therapy 
 service based on direct identification or the ratio of total 
 costs in paragraph (a) to the sum of total allowable salaries 
 and the costs in paragraph (a).  

    (c) The costs of housekeeping, plant operations and 
 maintenance, real estate taxes, special assessments, and 
 insurance, other than the amounts classified as a fringe 
 benefit, must be allocated to the therapy service based on the 
 ratio of service area square footage to total facility square 
 footage.  

    (d) The costs of bookkeeping and medical records must be 
 allocated to the therapy service either by the method in 
 paragraph (e) or based on direct identification.  Direct 
 identification may be used if adequate documentation is provided 
 to, and accepted by, the commissioner.  

    (e) The costs of administrators, bookkeeping, and medical 
 records salaries, except as provided in paragraph (d), must be 
 allocated to the therapy service based on the ratio of the total 
 costs in paragraphs (a) to (d) to the sum of total allowable 
 nursing facility costs and the costs in paragraphs (a) to (d).  

    (f) The cost of property must be allocated to the therapy 
 service and removed from the nursing facility's property-related 
 payment rate, based on the ratio of service area square footage 
 to total facility square footage multiplied by the 
 property-related payment rate. 

    Subd. 4.    Allocation of costs; hospital-attached 
 facilities.  To ensure the avoidance of double payments as 
 required by section 256B.433, the direct and indirect reporting 
 year costs of providing therapy services to residents of a 
 hospital-attached nursing facility, when the services are billed 
 separately from the nursing facility's payment rate or according 
 to Minnesota Rules, parts 9500.0750 to 9500.1080, must be 
 determined and deducted from the appropriate cost categories of 
 the annual cost report based on the Medicare step-down as 
 prepared in accordance with instructions provided by the 
 commissioner.  

    HIST: 1976 c 282 s 7; 1977 c 305 s 45; 1977 c 326 s 15,16; 
 1979 c 35 s 1; 1980 c 570 s 2; 1982 c 424 s 130; 1983 c 199 s 
 13; 1987 c 403 art 2 s 91-93; 1989 c 282 art 3 s 79; 1992 c 513 
 art 7 s 136; 1Sp1993 c 1 art 5 s 102