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9500.1116 DETERMINATION OF ADJUSTED BASE YEAR OPERATING COST PER DAY.

Subpart 1.

Neonatal transfers.

A.

For Minnesota and local trade area hospitals, the department will determine the neonatal transfer adjusted base year operating cost per day for Minnesota and local trade area admissions that result from a transfer to a neonatal intensive care unit specialty group according to subitems (1) to (6).

(1)

Determine the operating cost per day within each diagnostic category in part 9500.1100, subpart 20f, according to part 9500.1110, subpart 1, items A to E, and divide the total base year operating costs by the total corresponding inpatient hospital days for each admission.

(2)

Determine relative values for each diagnostic category at part 9500.1100, subpart 20f, according to part 9500.1110, subpart 1, items F, G, and H, after substituting the term "day" for "admission."

(3)

For each Minnesota and local trade area hospital that has admissions that result from a transfer to a neonatal intensive care unit specialty group, determine the operating cost for each admission according to part 9500.1110, subpart 1, items A to E.

(4)

Add the results for each admission in subitem (3).

(5)

Divide the total from subitem (4) by the total corresponding inpatient hospital days for each admission in subitem (3).

(6)

Adjust subitem (5) for case mix according to part 9500.1115, subpart 1, item D, after substituting the term "day" for "admission."

B.

For Minnesota and local trade area hospitals that do not have five or more medical assistance neonatal transfer admissions to a neonatal intensive care unit specialty group in the base year, the department will determine the neonatal transfer adjusted base year operating cost per day for admissions that result from a transfer to a neonatal intensive care unit according to subitems (1) to (3).

(1)

Multiply each adjusted base year operating cost per day for each Minnesota and local trade area hospital determined in item A, subitem (6), by the number of corresponding days in the hospital's base year.

(2)

Add the products in subitem (1).

(3)

Divide the total from subitem (2) by the total days for all Minnesota and local trade area hospitals and round that amount to whole dollars.

Subp. 2.

Long-term care hospital.

A.

The department will determine the base year operating cost per day for a long-term care hospital for the rate year according to subitems (1) and (2).

(1)

Determine the operating cost per day according to part 9500.1110, subpart 1, items A to D, except that claims excluded in part 9500.1110, subpart 1, item B, subitems (2) and (4), will be included.

(2)

Divide the total base year operating costs for all admissions in subitem (1) by the total corresponding inpatient hospital days for all admissions and round that amount to whole dollars.

B.

For long-term care hospitals that do not have five or more medical assistance admissions in the base year, the department will determine a long-term care hospital operating cost per day according to subitems (1) to (3):

(1)

Multiply each operating cost per day for each long-term care hospital as determined in item A, subitem (2), by the number of corresponding days in the hospital's base year.

(2)

Add the products in subitem (1).

(3)

Divide the total from subitem (2) by the total days for all long-term care hospitals and round that amount to whole dollars.

Statutory Authority:

MS s 256.9685; 256.9695

History:

18 SR 1115; 26 SR 976

Published Electronically:

October 16, 2013