Rental expense paid to a related organization

A provider may lease a facility from a related organization within the meaning of ratesetting principles. In such case, the rent paid to the lessor by the provider is not allowable as cost unless the rent paid is less than the allowable costs of ownership. If rent paid exceeds the allowable costs of ownership, the provider may include the allowable costs of ownership of the facility. These costs are property insurance, depreciation, interest on the mortgage, and real estate taxes. Other operating expenses of the related organization are not includable by the provider as an allowable cost of ownership, but may be included as allowable operating expenses subject to the provisions of section 75-02-06-07.