Tenn. Comp. R. & Regs. 1200-13-09-.09 - MINIMUM OCCUPANCY ADJUSTMENT

Capital costs shall be adjusted each year, using the formula set out below, if a facility's occupancy rate, based on staffed beds during the year, is below a minimum level. If a hospital exceeds its minimum occupancy rate, the formula is not applied. The minimum level is as follows:

Hospitals over 100 beds - 70% Hospitals with 100 beds or fewer - 60%

The adjustment will be computed as follows and will be made at the same time as the pass through adjustment as set out in rule 1200-13-9-.08.

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ACC = allowable capital costs

TCC = total capital costs

TBD = total beds used during the period

ABD = total bed days available during the period

Y = .6 for hospitals with 100 beds or fewer

= .7 for hospitals over 100 beds

All references to beds mean staffed beds. Staffed beds mean those beds which are equipped and available for patient use. Any beds or hospital wing which is unavailable for patient use, such as being closed for reasons including but not limited to, painting, maintenance, or insufficient nursing staff will not be considered staffed beds. It shall be the responsibility of the provider to determine, at least monthly, its number of staffed beds. A schedule showing the number of staffed and unstaffed beds, along with the reasons for being unstaffed, must be submitted with the cost report. This schedule is subject to audit in accordance with rule 1200-13-9-.14. If no schedule of staffed beds is received, staffed beds will be the number of beds at the end of the cost report period. For psychiatric providers, the minimum occupancy, adjustment will apply to services on and after July 1, 1988. The minimum occupancy adjustment will be applied before the adjustment specified in rule 1200-13-9.08(2)(d). Effective October 1, 1989, Tennessee Medicaid will not impose a minimum occupancy penalty.


Tenn. Comp. R. & Regs. 1200-13-09-.09
Original rule filed June 2, 1988; effective July 17, 1988. Amendment filed August 8, 1990; effective September 22, 1990.

Authority: T.C.A. ยงยง 4-5-202, 12-4-301, 71-5-105 and 71--5-109.

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