Allowable costs shall include items of expense the provider incurs in the provision of routine services related to resident care including:
The occupancy rate used in determining the per diem rate for each cost category shall be the greater of:
General and administrative expenses shall include but not be limited to:
Depreciation allowance shall be determined in accordance with the Medicare Principles of Reimbursement set forth at 42 CFR part 413 subpart G, except that:
Consistent use of either the component or composite asset depreciation schedule shall be required, as follows:
Donated assets shall be recorded at fair market value at the time received, based on the lesser of at least two bona fide appraisals.
Leasehold improvements shall be depreciated over the lesser of the asset's useful life or the remaining life of the lease.
When a facility is sold, the depreciation basis shall be subject to the limitation of the reevaluation of assets mandated by § 1861(v)(1)(O) of Title XVIII of the Social Security Act.
Necessary and proper interest on both current and capital indebtedness shall be allowable costs, determined in accordance with the Medicare Principles of Reimbursement set forth at 42 CFR § 413.153.
Bad debts, charity, and courtesy allowances, as defined at 42 CFR § 413.89(b), shall not be recognized as allowable costs.
The cost of services, facilities, and supplies furnished to the provider by an organization related to the provider by common ownership or control are included in the allowable cost of the provider at the cost to the related organization. The cost charged by the related organization shall not exceed the price of comparable services, facilities or supplies that could be purchased by independent providers in the Washington metropolitan area.
Return on equity capital of proprietary providers shall be determined according to the Medicare Principles of Reimbursement.
Reasonable rental expense shall be an allowable cost for leasing of a facility from a non-related party if it is an arm's length transaction.
The purchase or rental by a facility of any property, plant, equipment, services and supplies shall not exceed the cost that a prudent buyer would pay in the open market to obtain these items.
District of Columbia provider tax costs shall be excluded from allowable costs.
Home office costs and management fees shall be subject to the following conditions and limitations:
Respiratory therapy costs including equipment rental, supplies and labor and staffing costs associated with providing ventilator care shall be excluded from allowable costs.
For purposes of this section, the phrases "related to the provider," "common ownership" and "control" shall have the same meaning as set forth in 42 CFR § 413.17(b).
D.C. Mun. Regs. r. 29-6515