973. EXCLUSIONS FROM ALLOWABLE COSTS

973 EXCLUSIONS FROM ALLOWABLE COSTS 973.1 The following categories of expenses shall be excluded from allowable operating costs because they are not normally incurred in providing resident care: (a) Salaries of officers not performing managerial duties; (b) Fund raising expenses in excess of ten percent (10%) of the amount raised; (c) Free care or discounted services; (d) Parties and social activities not related to resident care; (e) Personal telephone, radio, and telephone services; (f) Gift, flower and coffee shop expenses; (g) Vending machines; (h) Organization Membership not related to resident cares (i) All services covered by direct provider payments under Medicaid, Medicare Part B, CHAMPUS, Blue Cross/Blue Shield, various other insurers or third party resources; (j) Interest expenses and penalties due to late payment of bills or taxes, or for licensure violations; (k) District of Columbia provider tax cost. If the provider tax is enacted after March 31, 1996 it shall not be excluded from allowable costs; and (l) Pharmacy expenses paid under the Point of Sale reimbursement system. 973.2 The following shall reduce allowable costs: (a) Costs related to revenue from laundry and linen service; (b) Employee and guest meals; (c) Sale of drugs to other parties; (d) Sale of medical and surgical supplies to parties other than customers; (e) Sale of medical records and abstracts; (f) Rental of quarters to employees and parties other than customers; (g) Rental of space; (h) Purchase discounts and allowances; (i) Rebates and refunds of expenses; (j) Investment income for unrestricted funds to the extent that it exceeds interest expense on investments; (k) Recovery of an insured loss; and (l) Grants, gift, and income from endowments designated by the donor for specific operating expenses. SOURCE: Final Rulemaking published at 45 DCR 2333, 2346 (April 17, 1998). District of Columbia Municipal Regulations Public Welfare 29 DCMR § 973