Section 16.03.10.591 - ICF/IID: NONALLOWABLE COSTSThe following definitions and explanations apply to nonallowable costs:
01.Accelerated Depreciation. Depreciation in excess of calculated straight line depreciation, except as otherwise provided is nonallowable.02.Acquisitions. Costs of corporate acquisitions, such as purchase of corporate stock as an investment, are nonallowable.03.Charity Allowances. Cost of free care or discounted services are nonallowable.04.Consultant Fees. Costs related to the payment of consultant fees in excess of the lowest rate available to a facility are nonallowable. It is the provider's responsibility to make efforts to obtain the lowest rate available to that facility. The efforts may include personally contacting possible consultants or advertising. The lowest rate available to a facility is the lower of the actual rate paid by the facility or the lowest rate available to the facility, as determined by departmental inquiry directly to various consultants. Costs in excess of the lowest rate available will be disallowed effective thirty (30) days after a facility is notified, unless the provider shows by clear and convincing evidence it would have been unable to comply with state and federal standards had the lowest rate consultant been retained or that it tried to but was unable to retain the lowest rate consultant. This subsection in no way limits the Department's ability to disallow excessive consultant costs under other sections of this chapter, such as Section 589 or 595 of these rules, when applicable.05.Fees. Franchise fees are nonallowable, see PRM, Section 2133.1.06.Fund Raising. Certain fund raising expenses are nonallowable, see PRM, Section 2136.2.07.Goodwill. Costs associated with goodwill as defined in Section 011 of these rules are nonallowable.08.Holding Companies. All home office costs associated with holding companies are nonallowable see PRM, Section 2150.2A.09.Interest. Interest to finance nonallowable costs are nonallowable.10.Medicare Costs. All costs of Medicare Part A or Part B services incurred by Medicare certified facilities, including the overhead costs relating to these services are nonallowable.11.Nonpatient Care Related Activities. All activities not related to patient care are nonallowable.12.Organization. Organization costs are nonallowable, see PRM, Section 2134.13.Pharmacist Salaries. Salaries and wages of pharmacists are nonallowable.14.Prescription Drugs. Prescription drug costs are nonallowable.15.Related Party Interest. Interest on related party loans are nonallowable, see PRM, Sections 218.1 and 218.2.16.Related Party Nonallowable Costs. All costs nonallowable to providers are nonallowable to a related party, whether or not they are allocated.17.Related Party Refunds. All refunds, allowances, and terms, will be deemed to be allocable to the members of related organizations, on the basis of their participation in the related purchases, costs, etc.18.Self-Employment Taxes. Self-employment taxes, as defined by the Internal Revenue Service, that apply to facility owners are nonallowable.19.Telephone Book Advertising. Telephone book advertising costs in excess of the base charge for a quarter column advertisement for each telephone book advertised in are nonallowable.20.Vending Machines. Costs of vending machines and cost of the product to stock the machine are nonallowable costs.Idaho Admin. Code r. 16.03.10.591