N.J. Admin. Code § 8:85-3.18

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

Section 8:85-3.18 - Transfer of ownership and new facilities

(a) For any facility that transfers ownership, the rate, cost reports and case mix indices established for the old owner shall pass to the new owner.

(b) New Class I NFs and Class II NFs shall be subject to the following:

1. The direct care limit for the applicable Class of NF shall be used to establish the direct care rate component;

2. The NFs' case mix portion percentage shall be the simple average of all Class I NFs' case mix portion percentages and the NFs' non-case mix portion percentage shall be 100 percent minus the simple average of all Class I NFs' case mix portion percentages;

3. For each rate quarter, the direct care rate component shall be the direct care limit for the applicable Class of NF multiplied by the simple average case mix portion percentage multiplied by the ratio of the facility average Medicaid case mix index to the Statewide average case mix index plus the simple average non-case mix portion percentage multiplied by the direct care limit.

i. Until the new NF has a final resident roster for the quarter, the Department shall use the Statewide average Medicaid case mix index for the quarter to establish the direct care rate component;

4. The operating and administrative rate component shall be the price established for that NF's class designation for the rate year; and

5. The Department shall calculate the FRV allowance using 40 years of age for the NF unless a verifiable FRV Re-age Request is submitted and has the effect of re-aging the NF for the purposes of the FRV calculation.

(c) For new Class III NFs, as defined in 8:85-3.15(a)1, the rate shall be the simple average rate of the SCNFs in the group for which the new Class III NF qualifies.

N.J. Admin. Code § 8:85-3.18

As amended, R.1984 d.573, effective 12/16/1984.
See: 16 N.J.R. 2484(a), 16 N.J.R. 3437(a).
Deleted (a)4 and recodified (a)5 to (a)4.
Amended by R.1986 d.69, effective 3/17/1986.
See: 17 N.J.R. 1736(a), 18 N.J.R. 561(a).
(a)4 added; old (a)4 renumbered to (a)5.
Amended by R.1987 d.6, effective 1/5/1987.
See: 18 N.J.R. 257(a), 19 N.J.R. 126(a).
(a)4 added.
Recodified from 10:63-3.17 and amended by R.1994 d.624, effective 1/3/1995.
See: 26 N.J.R. 3614(a), 27 N.J.R. 156(a).
Amended by R.1995 d.174, effective 3/20/1995 (operative April 1, 1995).
See: 27 N.J.R. 281(a), 27 N.J.R. 1307(a).
Recodified from N.J.A.C. 10:63-3.18 and amended by R.2005 d.389, effective 1/17/2006.
See: 36 N.J.R. 4700(a), 37 N.J.R. 1185(a), 38 N.J.R. 674(a).
In (a)3 and 5, substituted "Department" for "departments".
Repeal and New Rule, R.2011 d.121, effective 4/18/2011.
See: 42 N.J.R. 1793(a), 43 N.J.R. 961(c).
Section was "Adjustments to base period data".