(1) The initial step in the allocation of
home office and regional office costs is direct allocation of all allowable
costs directly attributable to a particular nursing facility (such as
construction interest, salary where the administrator of a nursing facility in
the chain is paid directly by the home office, etc.) or non-nursing facility
(2) Other allowable costs
must appropriately be allocated among the providers (and to any non-provider
activities in which the home office or regional office may be engaged) on the
basis of beds, resident days, or other bases, whichever most equitably
allocates such costs. Revenues are not generally appropriate for distributing
these costs. Where possible, allocation of costs are to be based on function
and, consequently, the bases of allocation may appropriately be different, say
for accounting costs and for personnel costs. Where the home office or regional
office incurs costs for activities not related to resident care in the chain's
participating providers, the allocation basis must provide for all allocation
of costs such as rent, administrative salaries, other general overhead costs,
organization costs, etc., that are attributable to non-resident care as well as
resident care activities.
Or. Admin. R.
PWC 866(Temp), f. 12-30-77,
ef. 1-1-78; AFS 19-1978, f. & ef. 5-1-78; Renumbered from 461-017-0345 by
Ch. 784, OL 1981 & AFS 69-1981, f. 9-30-81, ef. 10-1-81; SSD 6-1985, f.
5-31-85, ef. 6-1-85; SSD 10-1989, f. 6-30-89, cert. ef. 7-1-89; SSD
14-1991(Temp), f. 6-28-91, cert. ef. 7-1-91; SSD 18-1991, f. 9-27-91, cert. ef.
10-1-91; SSD 6-1993, f. 6-30-93, cert. ef. 7-1-93; SPD 9-2006, f. 1-26-06,
cert. ef. 2-1-06
Stat. Auth.: ORS
Stats. Implemented: ORS