Rate Setting Methodologies For Medical, Residential Services

(1) Medical Residential Services. (a) For residential services that are shift-staffed, staff coverage is calculated as follows: 1. 168 hours per week - 7 days at 24 hours per day. 2. The unit of service for these residential services is a day. (b) The calculation of the daily cost per person for a Full Time Equivalent (FTE) is: 1. Allowable Hourly direct support staff wages plus % for benefits for the hourly cost for direct support staff. 2. Annual allowable salary for direct supervision plus % for benefits divided by four residents equals the cost per person per year. 3. Divide the cost per person per year by 52 weeks and by 168 hours to arrive at the hourly cost for supervision. 4. Add together the hourly cost for direct support staff and the hourly cost for supervision. 5. Multiply the result from Step four by one and the % allowed for non-direct program costs. METHODOLOGY UTILIZED TO DETERMINE PAYMENTS TO CHAPTER 0465-01-02 SERVICE PROVIDERS (RATE STRUCTURE) 6. Multiply the result from Step five by one and the % allowed for administrative costs to arrive at the hourly cost for coverage. 7. Multiply the hourly cost for an FTE by 168 hours to arrive at the weekly cost for coverage. 8. Divide the weekly cost by 7 days to arrive at the daily cost for coverage. 9. Divide the daily cost by allowable FTEs to arrive at the daily FTE cost per person. (c) Calculation for the daily rate per person is: 1. For each Rate Level and Home Size, multiply the daily per person FTE cost by the rate level factor. 2. Divide the result of Step one by the facility size. 3. Multiply the result of Step two by 385 (to allow for 20 absent days). 4. Divide the result of Step three by 365 to arrive at the daily rate.