N.J. Admin. Code § 10:52-6.28

Current through Register Vol. 56, No. 21, November 4, 2024

Section 10:52-6.28 - Sales and services not related to patient care

(a) Provision of General Services to an External Organization: The provision of data processing, laundry, housekeeping, managerial or other general services by a hospital to an organization other than another health care facility shall be excluded and treated as Case A. Costs of such arrangements shall include associated overhead and be reported in accordance with the reporting of related organizations.

(b) Sale of Medical Supplies (other than for an episode of hospital care) to patients such as take-home drugs, excluding those items where it would be medically unreasonable to limit the patient's use to the episode of hospital care, and others shall be excluded. Take-home supplies for renal dialysis and home health care shall be included when included in the provisions of Medicare HIM-29 and HIM-11 (Case A). For the address for obtaining Medicare documents see 10:52-6.20(b).

(c) Sale of scrap revenue shall be excluded from the revenue center and treated as Case B.

(d) Medical Records Transcription for patients, their legal advocates, or other non-hospital personnel shall be excluded. Costs (to be reported to the revenue received unless direct costing is available) and revenue shall be treated as Case A.

(e) Cafeteria operations, including vending machines, shall be treated as Case C, except for the subsidization of employee meals and meals for students in approved programs. Cafeteria operating losses shall be apportioned among employees, students and others. Subsidization of employee (including resident) meals shall be included as an employee fringe benefit. Subsidization of student meals shall be included as other direct expenses in either EDU or GME cost centers.

(f) Gift and Coffee Shops revenue and expense (including sales tax expense) as well as other activities which may be supported by volunteers shall be excluded from Services Related to Patient Care. Net gains from the operation of gift and coffee shops operated by volunteers shall not be offset against Costs Related to Patient Care (Case C).

(g) Services Rendered to Staff physicians by a hospital which normally would be incurred in a physician's private practice, such as the provision of medical secretarial services, shall be excluded and treated as Case C so long as the physician's compensation is not provided through agreement with a hospital.

(h) Parking lot or parking garage expenses and revenues at the site of the hospital shall be netted and the remainder apportioned between employees and others. The provision of parking facilities to:

1. Employees shall be included--Losses incurred from the operation of an employee parking lot shall be included as an employee fringe benefit;

2. Staff physicians parking shall be included and treated as Case B; and

3. Others shall be included as Case B if the hospital's charge for parking is not substantially inconsistent with other parking facilities in the community where the hospital is located. If the Commission determines that the hospital's parking charges are not competitive with other parking facilities, the provision of parking to others shall be treated as Case C.

(i) Non-Patient Room and Board expenses and revenues shall be netted and apportioned among employees, students and others. Sufficient accounting records shall be maintained to identify all related expenses as well as the number of persons housed. The provision of Room and Board to:

1. Employees and residents (including rotating residents who spend some portion of their residency at the hospital) shall be included. Losses incurred from housing an employee shall be included as an employee fringe benefit as Case B, see 10:52-6.20(d).

2. Students shall be included if in an approved educational program. Losses incurred from housing a student shall be assigned to Nursing and Allied Health Education (EDU) 10:52-6.70 and Graduate Medical Education (GME) Case B, see 10:52-6.71, or Non-Approved Education and Research as Case A.

3. Others not involved with the patient services of the hospital shall be excluded (Case A).

N.J. Admin. Code § 10:52-6.28

Recodified from N.J.A.C. 10:52-6.30 and amended by R.2000 d.29, effective 1/18/2000.
See: 31 New Jersey Register 3151(a), 32 New Jersey Register 276(a).
In (b) and (i)1, changed N.J.A.C. references. Former N.J.A.C. 10:52-6.28, Excluded Health Care Services, recodified to N.J.A.C. 10:52-6.26.
Amended by R.2005 d.214, effective 7/5/2005.
See: 37 New Jersey Register 436(a), 37 New Jersey Register 2506(a).
In (a), deleted "(see N.J.A.C. 10:52-6.12)" following "related organizations"; in (i), amended the N.J.A.C. references in 2.