Ala. Admin. Code r. 560-X-42-.15

Current through Register Vol. 43, No. 1, October 31, 2024

Section 560-X-42-.15 - Costs To Related Parties

(1) Allowable costs incurred by a provider for services or goods provided by Related Parties will not exceed the net cost of the services or goods to that Related Party, and that cost cannot exceed the fair market value of the items or services involved.

(2) Under no circumstances will rent paid to a Related Party be includable in allowable costs. In such cases, lessor's costs, including an appropriate amount of equity capital, may be included in allowable costs, provided that such costs do not exceed the fair market value of the leased assets.

(3) The provisions of HIM-15 shall be applicable in determining whether a Related Party relationship exists.

Author: Susan Mims

Ala. Admin. Code r. 560-X-42-.15

Rule effective October 13, 1988.

Statutory Authority: State Plan; Title XIX, Social Security Act; 42 C.F.R. §§447.250 - .255.