Computation Of Cost Increase Factor

The department shall compute a cost increase factor in the following manner. For an institution that has completed three (3) full years of rendering a certain type of service, this factor shall be the average of the institution’s increase or decrease in average daily cost for that type of service over the prior two (2) years. Negative averages shall be considered as zero. For an institution that has not completed three (3) full years of rendering a certain type of service, the factor shall not exceed the 100th percentile value for the factor for mental health institutes. The cost-increase amounts used in determining the 100th percentile shall be the latest values calculated for at least 50 percent of the mental health institutes that have rendered like type services three (3) full years. DETERMINATION OF AVERAGE DAILY COST CHAPTER 0940-02-01