S.D. Admin. R. 67:16:04:47

Current through Register Vol. 51, page 43, September 23, 2024

Section 67:16:04:47 - Costs not allowed

The following costs are not allowed:

(1) Income tax;

(2) Compensation paid to owners or employees who serve on a facility's board of directors. Compensation paid to other board members is limited to $75 a day for each board meeting up to a maximum of 12 meetings each fiscal year;

(3) Promotional and advertising expenses are not allowed except as provided in the Medicare Provider Reimbursement Manual (CMS Pub 15-1), as specified in § 67:16:04:62;

(4) Travel and entertainment other than for professional meetings and direct operations of the facility;

(5) Costs of motor homes, boats, and other recreational equipment or vehicles, including operation and maintenance;

(6) Donations;

(7) Expenses of non-nursing facilities and operations to be calculated using allocation methods as outlined in the Medicare Provider Reimbursement Manual (CMS Pub 15-1), as specified in § 67:16:04:62;

(8) Bad debts, charity, and courtesy allowances;

(9) Carryover of costs lost due to any limit in this article;

(10) Costs of legal fees, accounting and consultant services, or other related costs incurred in connection with hearings, arbitration, or judicial proceedings pertaining to reimbursement rates. However, such costs are allowable when a facility's request for a reimbursement rate adjustment constitutes a valid claim;

(11) Acquisition costs, including legal fees, brokerage fees or commissions, accounting, administration, travel, and feasibility studies. This applies whether the costs are incurred as the result of the purchase or lease of a facility;

(12) Any cost of a sublease that exceeds the cost of the lease between the owner and the first lessee of the current lease;

(13) Any penalty or fee assessed by a government agency for tardy reporting, nonpayment of any other fee, or any other fee which could have been avoided; and

(14) Any fee paid for the preparation of the resident assessment after a government agency has withdrawn or suspended its approval for preparation of the document because of improper reporting of a resident's condition.

S.D. Admin. R. 67:16:04:47

15 SDR 68, effective 11/7/1988; 17 SDR 50, effective 10/7/1990; transferred from

General Authority: SDCL 28-6-1(2).

Law Implemented: SDCL 28-6-1(2).