HAR §17-1739-69. Treatment of new facilities

(a) Rates for new providers shall be calculated by a separate method. A new provider shall receive the statewide weighted average payment rates for its classification times the following new provider adjustment factor: (1) First Operating Year - one hundred fifty per cent; (2) Second Operating Year - one hundred forty per cent; (3) Third Operating Year - one hundred thirty per cent; and (4) Fourth Operating Year and thereafter one hundred twenty five per cent; (5) If a facility's operating year does not coincide with the PPS fiscal year, then the new provider's rates shall be prorated based on the PPS fiscal year. For example, a new provider that begins its first operating year on January 1 would receive one hundred forty-five per cent of the statewide weighted average payment rates for its classification for the entire PPS fiscal year that begins on the immediately following July 1. (b) Capital related costs shall be reimbursed as defined in section 17-1739-65(b) and (c). (c) For new providers that are proprietary facilities, the PPS rates shall also be adjusted by return on equity and gross excise tax factors. Those factors shall be based on projected costs and receipts and calculated as defined in section 17-1739-65(d). (d) A new provider may seek rate reconsideration under section 17-1739-78(a)(3) if it adds an approved intern and resident teaching program. A new provider is also eligible for the disproportionate share adjustment if it meets the qualifications defined in this subchapter. (e) A new provider shall have its PPS rates determined under this section until it no longer meets UNOFFICIAL 1739-23 the definition of a new provider. Thereafter, its PPS rates shall be based on its base year cost report like all other providers. [Eff 11/13/95 ] (Auth: HRS §346-59) (Imp: 42 C.F.R. §447.252)