N.J. Admin. Code § 8:31B-4.66

Current through Register Vol. 56, No. 11, June 3, 2024

Section 8:31B-4.66 - Administrative items

(a) Administrative Expense Exclusions as listed in this section are not included in Costs Related to Patient Care and, as such, are not to be included in expenses defined as General Administrative Services (Case C);

1. Life insurance premiums for employees where the hospital is the direct beneficiary;

2. Stockholders servicing costs such as those incurred to schedule and hold annual meetings;

3. Advertising costs, conducted by hospital personnel or agents of the hospital, which are directed at increasing utilization or medical staff membership, except where attempts to increase medical staff membership is for the procurement of a scarce medical service needed in the service area of the hospital;

4. Costs of membership in organizations not related to the development and operation of the hospital and the rendering of patient care services (e.g., social or fraternal organizations) are not included as an employee fringe benefit in 8:31B-4.131;

5. Monies paid by a hospital to the home office, corporate or order headquarters for:

i. Non-patient care related enterprises;

ii. Abandoned home office planning costs for construction of a new facility; or

iii. The imputed value of services performed by non-paid workers in the case of religious orders.

(b) Income and Other Taxes including penalties for late payment of taxes (See 8:31B-4.34 for full description) are not includable as Costs Related to Patient Care and as such are not to be included in expenses defined as General Administrative Services, 8:31B-4.118 (Case C).

(c) Purchase Discounts, revenue from rebates and quantity discounts, are to be reported as expense recoveries.

(d) Gains on pension reversions are included as Services Related to Patient Care and, as such, shall be treated as Case B and offset against Costs Related to Patient Care.

N.J. Admin. Code § 8:31B-4.66

Amended by R.1982 d.449, effective 12/20/1982.
See: 14 New Jersey Register 946(b), 14 New Jersey Register 1457(a).
Added hospitals "under the conditional accept or not accept options" to (e).
Amended by R.1983 d.596, effective 12/19/1983.
See: 15 New Jersey Register 1334(a), 15 New Jersey Register 2166(a).
(c): "applied as offsets against ... (Case B)" changed to "reported as expense recoveries".
Amended by R.1986 d.477, effective 12/15/1986 (operative January 1, 1987).
See: 18 New Jersey Register 1911(a), 18 New Jersey Register 2447(a).
Amended cross reference in (d) to 4.46.
Amended by R.1991 d.158, effective 3/18/1991.
See: 22 New Jersey Register 3724(a), 23 New Jersey Register 898(a).
Exception to exclusion at (e); treatment of pension gains added at (f).
Amended by R.1993 d.593, effective 11/15/1993.
See: 25 New Jersey Register 3117(a), 25 New Jersey Register 5149(a).