Ala. Admin. Code r. 560-X-22-.19
Current through Register Vol. 43, No. 1, October 31, 2024
Section 560-X-22-.19 - Receipts Which Offset Or Reduce Costs(1) Certain income items or receipts must be used to either offset costs or reduce total reported costs. Typical, but not all inclusive, examples of such transactions are: (a) Purchase discounts, rebates or allowances.(b) Recoveries or indemnities on losses (i.e., insurance proceeds).(c) Sale of scrap or incidental services.(d) Sale of medical supplies (other than to patients).(e) Medicare Part B - Income.(g) Cash contributions and donations designated by a donor for paying specific operating costs.(2) These items may be handled in either of two ways, at the option of the provider: (a) The cost related to the income can be offset. If this option is selected, the provider must maintain adequate records to support the amount offset.(b) If all costs associated with the income cannot be or are not identified separately on the cost report and in the provider's books and records, then the total income must be used to reduce total reported costs.(3) Cash contributions or donations which are not restricted or designated for a specific purpose by the contributor or donor are considered the property of the provider and can be used as they deem appropriate. This income does not have to be offset against any otherwise allowable cost. The provider, however, must keep adequate records to verify the source of such funds and lack of restriction.(4) Interest earned on restricted funds such as mortgage escrow and/or deposits must be used to offset the interest expense incurred on those loans. Provider records must be adequate to allow verification of all such interest earnings.Ala. Admin. Code r. 560-X-22-.19
Rule effective 10/1/1982. Amended effective 10/1/1990. Emergency rule effective 9/12/1991. Amended effective 12/12/1991.Author: Susan Mims
Statutory Authority: State Plan; Title XIX, Social Security Act; 42 C.F.R. §§ 447.200 - .272, et seq.