Ch. 7, § 6. Joint Use of Resources

(a) Each nursing facility must keep its revenues, expenses, and statistical and financial records separate and clearly identified. If a nursing facility does not comply with this rule, commingled costs are disallowed for purposes of all involved nursing facility's per diem rate. (b) A nursing facility must allocate pooled costs reasonably and in conformance with GAAP. A pooled cost is allowable only to the extent that the pooled cost is incurred in providing patient-related services and the nursing facility can demonstrate that pooled cost improves efficiency, economy, or quality of care. Allowable pooled costs may be reported as an operating cost. (c) Direct patient service costs incurred by multiple nursing facility organizations may be reported in the health care component if the service was rendered to the client at the nursing facility and is separately identified, rather than allocated, in the provider's accounting records. Patient service costs which do not meet these criteria must be reported in the operating cost component.