| (ii) based upon the labor costs method stated in subparagraph
(B)(ii) of this paragraph.
(D) In order to achieve a more accurate and representative
reporting of costs than results from allocating shared indirect costs
as a pool of costs, a provider may choose to allocate its indirect
shared expenses on an appropriate and reasonable functional basis.
If allocating shared direct client care costs, a provider may use
an appropriate and reasonable functional method. For example, costs
of a central payroll operation could be allocated to all business
components based on the number of checks issued; the costs of a central
purchasing function could be allocated based on the number of purchases
made or requisitions handled; payroll costs for an administrative
employee working across business components could be directly charged
based upon that employee's time sheets and/or allocated based upon
a documented time study; food costs could be allocated based upon
a functional study of shared dietary costs; transportation equipment
costs could be allocated based upon mileage logs; and shared laundry
costs could be allocated based upon a functional study of the number
of pounds/loads of laundry processed. Providers choosing to allocate
allowable employee-related self-insurance paid claims in accordance
with §355.103(b)(13)(B)(ii) of this title should base the allocation
on percentage of salaries of employees benefiting from the coverage
for fully self-insured situations or on percentage of premiums of
covered employees for partially self-insured situations since purchased
premiums must be directly charged.
(E) Because the determination of reimbursement is based
on cost data, allocation methods based upon revenue streams are inappropriate
and unallowable.
(k) Net expenses. Net expenses are gross expenses less
any purchase discounts or returns and allowances. Purchase discounts
are cash discounts reducing the purchase price as a result of prompt
payment, quantity purchases, or for other reasons. Purchase returns
and allowances are reductions in expenses resulting from returned
merchandise or merchandise which is damaged, lost, or incorrectly
billed. Only net expenses may be reported on the cost report. Expenses
reported on the cost report must be adjusted for all such purchase
discounts or returns and allowances.
|
| Source Note: The provisions of this §355.102 adopted to be effective September 1, 1996, 21 TexReg 7866; duplicated effective September 1, 1997, as published in the Texas Register October 17, 1997, 22 TexReg 10311; amended to be effective December 29, 1997, 22 TexReg 12485; amended to be effective June 26, 2000, 25 TexReg 6089; amended to be effective October 1, 2000, 25 TexReg 9924; amended to be effective August 31, 2004, 29 TexReg 8093; amended to be effective January 8, 2006, 30 TexReg 8854; amended to be effective October 28, 2007, 32 TexReg 7461; amended to be effective September 1, 2011, 36 TexReg 4795; amended to beeffective January 1, 2015, 39 TexReg 9193; amended to be effective March 1, 2018, 43 TexReg 339; amended to be effective January 1, 2019, 43 TexReg 8581 |
