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    Subdivision 1. Scope. For the purposes of this section and sections 256B.41, 256B.411,
256B.431, 256B.432, 256B.433, 256B.434, 256B.47, 256B.48, 256B.50, and 256B.502, the
following terms and phrases shall have the meaning given to them.
    Subd. 2. Actual allowable historical operating cost per diem. "Actual allowable historical
operating cost per diem" means the per diem operating costs allowed by the commissioner for the
most recent reporting year.
    Subd. 3. Commissioner. "Commissioner" means the commissioner of human services.
    Subd. 4. Final rate. "Final rate" means the rate established after any adjustment by the
commissioner, including but not limited to adjustments resulting from cost report reviews and
field audits.
    Subd. 5. General and administrative costs. "General and administrative costs" means
all allowable costs for administering the facility, including but not limited to: salaries of
administrators, assistant administrators, accounting personnel, data processing personnel, and
all clerical personnel; board of directors fees; business office functions and supplies; travel,
except as necessary for training programs for nursing personnel and dietitians required to
maintain licensure, certification, or professional standards requirements; telephone and telegraph;
advertising; membership dues and subscriptions; postage; insurance, except as included as a
fringe benefit under subdivision 14; professional services such as legal, accounting and data
processing services; central or home office costs; management fees; management consultants;
employee training, for any top management personnel and for other than direct resident care
related personnel; and business meetings and seminars.
    Subd. 6. Historical operating costs. "Historical operating costs" means the allowable
operating costs incurred by the facility during the reporting year immediately preceding the rate
year for which the payment rate becomes effective, after the commissioner has reviewed those
costs and determined them to be allowable costs under the medical assistance program, and after
the commissioner has applied appropriate limitations such as the limit on administrative costs.
    Subd. 7. Nursing facility. "Nursing facility" means a facility licensed under chapter 144A or
a boarding care facility licensed under sections 144.50 to 144.56.
    Subd. 8. Operating costs. "Operating costs" means the day-to-day costs of operating the
facility in compliance with licensure and certification standards. Operating cost categories
are: nursing, including nurses and nursing assistants training; dietary; laundry and linen;
housekeeping; plant operation and maintenance; other care-related services; medical directors;
licenses, other than license fees required by the Minnesota Department of Health; permits; general
and administration; payroll taxes; real estate taxes, license fees required by the Minnesota
Department of Health, and actual special assessments paid; and fringe benefits, including clerical
training; and travel necessary for training programs for nursing personnel and dietitians required
to maintain licensure, certification, or professional standards requirements.
    Subd. 9. Payment rate. "Payment rate" means the rate determined under section 256B.431.
    Subd. 10. Private paying resident. "Private paying resident" means a nursing facility
resident who is not a medical assistance recipient and whose payment rate is not established by
another third party, including the Veterans Administration or Medicare.
    Subd. 11. Rate year. "Rate year" means the fiscal year for which a payment rate determined
under section 256B.431 is effective, from July 1 to the next June 30.
    Subd. 12. Reporting year. "Reporting year" means the period from October 1 to September
30, immediately preceding the rate year, for which the nursing facility submits reports required
under section 256B.48, subdivision 2.
    Subd. 13. Actual resident day. "Actual resident day" means a billable, countable day as
defined by the commissioner.
    Subd. 14. Fringe benefits. "Fringe benefits" means workers' compensation insurance, group
health or dental insurance, group life insurance, retirement benefits or plans, except for Public
Employee Retirement Act contributions, and uniform allowances.
    Subd. 15. Payroll taxes. "Payroll taxes" means the employer's share of FICA taxes,
governmentally required retirement contributions, and state and federal unemployment insurance
    Subd. 16. Capital assets. "Capital assets," for purposes of section 256B.431, subdivisions
13 to 21
, means a nursing facility's buildings, attached fixtures, land improvements, leasehold
improvements, and all additions to or replacements of those assets used directly for resident care.
History: 1983 c 199 s 11; 1984 c 641 s 14-16; 1984 c 654 art 5 s 58; 1985 c 267 s 2;
1Sp1985 c 3 s 26; 1Sp1985 c 9 art 2 s 49; 1987 c 403 art 2 s 88; 1989 c 282 art 3 s 65; 1992 c
513 art 7 s 86,87,136; 1997 c 203 art 3 s 6; 2004 c 206 s 52

Official Publication of the State of Minnesota
Revisor of Statutes