Section 405IAC1-14.6-10. Computation of rate; allowable costs; review of cost reasonableness

   (a) Costs and revenues, excluding non-Medicaid routine revenue, shall be reported as required on the financial report forms. Allowable patient care costs shall be clearly identified.

  (b) The provider shall report as patient care costs only costs that have been incurred in the providing of patient care services. The provider shall certify on all financial reports that costs not related to patient care have been separately identified on the financial report.

  (c) In determining reasonableness of costs, the office may compare line items, cost centers, or total costs of providers throughout the state. The office may request satisfactory documentation from providers whose costs do not appear to be accurate or allowable.

  (d) Indiana state taxes, including local taxes, shall be considered an allowable cost. Personal or federal income taxes are not considered allowable costs.

  (e) The following costs are not considered allowable costs and shall not be included in the established rate:

(1) All over-the-counter, legend, and nonlegend drugs.

(2) Cost of replacement hearing aids and eyeglasses.

(3) All costs associated with pastoral care.

(4) All costs associated with resident and family gifts, including, but not limited to, flowers, Bibles, and memory books.

(5) All costs associated with collection fees.

(6) All costs, fees, and dues associated with lobbying activities.

(7) All costs of acquisitions, such as the purchase of corporate stock as an investment or purchases of new facilities.

(8) All costs associated with barber and beauty shop activities.

(9) All costs associated with marketing.

(Office of the Secretary of Family and Social Services; 405 IAC 1-14.6-10; filed Aug 12, 1998, 2:27 p.m.: 22 IR 76, eff Oct 1, 1998; filed Mar 2, 1999, 4:42 p.m.: 22 IR 2245; readopted filed Jun 27, 2001, 9:40 a.m.: 24 IR 3822; readopted filed Sep 19, 2007, 12:16 p.m.: 20071010-IR-405070311RFA; filed May 31, 2013, 8:52 a.m.: 20130626-IR-405120279FRA; readopted filed Oct 28, 2013, 3:18 p.m.: 20131127-IR-405130241RFA; filed Aug 1, 2016, 3:44 p.m.: 20160831-IR-405150418FRA)