Ch. 7, § 18. State-Owned Nursing Facilities

Any state-owned nursing facility is subject to this Chapter with the exception of rate and price setting. (a) State-owned nursing facility data will not be included in the nursing facilities database. (b) A state-owned nursing facility per diem rate is calculated using either its desk reviewed or audited cost report. Costs are not subject to any cap or maximum rate. (c) Per diem rates for state owned nursing facilities are calculated by inflating the audited or desk reviewed costs from the midpoint of the nursing facility's cost reporting year to the midpoint of the rate year. Inflated costs will be divided by total patient days to set the state-owned nursing facility per diem rate. (d) The inflation factor is the Skilled Nursing Facility (SNF) Market Basket as published quarterly by DRI/Global Resources or its successor. (e) In times of hiring difficulties where the state must use contract staffing or in periods of low occupancy which cause a nursing facility to operate at a significant budget deficit, the Department can increase the state-owned nursing facility per diem rate in accordance with the distressed nursing facility procedures.