§ 6211.16. Establishment of standard interim per diem rate.

 (a)  The standard interim per diem rate shall be used for billing purposes throughout the current fiscal year.

 (b)  The standard interim per diem rate shall be established by dividing the total projected operating cost by 98% of the maximum possible number of days based on the number of certified beds of the facility.

 (c)  The total projected operating cost is derived under the following procedures:

   (1)  Taking the total MA allowable costs, including adjustments for income, and comparing this to the approved budget total, or the total projected operating costs if applicable, for the same fiscal year in order to determine the lesser amount. From the lesser amount, subtract depreciation on capital assets, limited to buildings and fixed equipment, and interest on capital indebtedness.

   (2)  Projecting the amount in paragraph (1) to allow for inflation for each fiscal year through the end of the fiscal year in which the rate is to be effective, using a percentage for each fiscal year specified by the Department based upon a projected economic forecast, such as the Consumer Price Index-W.

   (3)  Adding depreciation on capital assets, limited to buildings and fixed equipment, and interest on capital indebtedness to the total projected cost to result in the total projected operating cost.

 (d)  The cost report submitted by the provider, in addition to adjustments made by the Office of Mental Retardation, as specified in §  6211.14 (relating to adjustments to cost report), shall be used for the calculation of the standard interim per diem rate.

   This section cited in 55 Pa. Code §  6211.18 (relating to upper limits of payment if the standard interim per diem rate is used); and 55 Pa. Code §  6211.41 (relating to cost reimbursement).