Section 14. Imputed Occupancy

In order to insure that the medicaid program does not pay for costs associated with unnecessary beds as evidenced by under-utilization, allowable facility costs will be calculated by imputing a ninety percent occupancy rate. This provision will apply to: A. any new facility certified for participation in the medicaid program on or after January 1, 1988; B. existing facilities, if the number of licensed or certified beds increases on or after January 1, 1988. In such cases, occupancy will be imputed for all beds; C. replacement facilities, certified for participation in the medicaid program on or after January 1, 1988, if the replacement facility contains a higher number of licensed or certified beds than the facility being replaced; D. any replaced facility which re-enters the medicaid program on or after January 1, 1988, either under the same ownership or different ownership; E. any closed facility which re-enters the medicaid program on or after January 1, 1988; F. facility costs will be adjusted and the resulting rate change will become effective when any of the above occurs; providers operating such facilities shall submit appropriate information regarding facility costs so that the rate adjustment can be computed.