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016.06.8-3-4. Items that will Reduce Allowable Costs.

AR ADC 016.06.8-3-4Arkansas Administrative Code

West's Arkansas Administrative Code
Title 016. Department of Human Services
Division 06. Division of Medical Services
Rule 8. Medical Assistance Program Manual of Cost Reimbursement Rules for Long Term Care Facilities
Chapter 3. Allowable Costs
Ark. Admin. Code 016.06.8-3-4
016.06.8-3-4. Items that will Reduce Allowable Costs.
Currentness
A Interest income on unrestricted funds will reduce interest expense on all short-term debt not to exceed interest expense. Short-term debt will be defined as debt having a term of 48 months or less.
B. Grants, gifts, and income designated by the donor for specific operating expenses must be used as an offset to those specific operating expenses.
C. Recovery of insured loss.
D. The cost of the following items should be eliminated. In lieu of determining and eliminating costs, the related income may be used to offset costs.
1. Income from laundry and linen service.
2. Income from employee and guest meals.
3. Income from the sale of drugs to other than residents.
4. Income from the sale of medical and surgical supplies to other than residents.
5. Income from the sale of medical records and abstracts.
6. Income from space rented to employees and others.
7. Payment received from specialists.
8. Payments received from recipients for items not medically necessary to the recipient; i.e., tobacco, soft drinks, personal items, etc.
E. Rebates and refunds of expenses.
F. Trade, quantity, time, and other discounts on purchases.
Current with amendments received through February 15, 2024. Some sections may be more current, see credit for details.
Ark. Admin. Code 016.06.8-3-4, AR ADC 016.06.8-3-4
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