405 IAC 1-17-13 - Unallowable costs; cost adjustments; charity and courtesy allowances; discounts; rebates; refunds of expenses
Authority: IC 12-15-1-10; IC 12-15-1-15; IC 12-15-21-2
Affected: IC 12-13-7-3; IC 12-15
Sec. 13.
(a) Charity,
courtesy allowances, discounts, refunds, rebates, and other similar items
granted by a provider shall not be included in allowable costs. Bad debts
incurred by a provider shall not be an allowable cost.
(b) Payments that must be reported on the
annual financial report form that are received by a provider, an owner, or
other official of a provider in any form from a vendor shall be considered a
reduction of the provider's costs for the goods or services from that
vendor.
(c) The cost of goods or
services sold to nonpatients shall be offset against the total cost of such
service to determine the allowable patient related expenses. If the provider
has not determined the cost of such items, the revenue generated from such
sales shall be used to offset the total cost of such services.
Notes
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Authority: IC 12-15-1-10; IC 12-15-1-15; IC 12-15-21-2
Affected: IC 12-13-7-3; IC 12-15
Sec. 13.
(a) Charity, courtesy allowances, discounts, refunds, rebates, and other similar items granted by a provider shall not be included in allowable costs. Bad debts incurred by a provider shall not be an allowable cost.
(b) Payments that must be reported on the annual financial report form that are received by a provider, an owner, or other official of a provider in any form from a vendor shall be considered a reduction of the provider's costs for the goods or services from that vendor.
(c) The cost of goods or services sold to nonpatients shall be offset against the total cost of such service to determine the allowable patient related expenses. If the provider has not determined the cost of such items, the revenue generated from such sales shall be used to offset the total cost of such services.