§ 1181.232. Changing the basis for allocating cost centers.
(a) Occasionally a provider may wish to use an allocation basis for a particular cost center which is different than that required by the MA-11 because the provider believes the change will result in more appropriate and more accurate allocation. In these cases the provider shall submit a written request to the Department for approval of the change and provide reasonable justification for the change prior to the beginning of the cost reporting period for which the change is to apply.
(b) The Department’s approval or denial of a provider’s request will be furnished to the provider in writing. If the Department approves the provider’s request, the change shall be applied to the cost reporting period for which the request was made and to all subsequent cost reporting periods unless the Department approves a subsequent request for change by the provider. If the request is denied, the facility shall continue to use the most current of either the allocation basis established by the Department or the facility’s most current revised allocation basis that was approved by the Department. The acknowledgement by the Department’s auditors that a particular cost-allocation methodology exists may neither be construed as nor used as a substitute for written Departmental approval of the facility’s request for a change in the basis for allocating costs.
(c) The effective date of an approved request for a change in the allocation basis will be the beginning of the cost-reporting period for which the request was made.
Source The provisions of this § 1181.232 adopted August 5, 1983, effective July 1, 1983, 13 Pa.B. 2402.
Notes of Decisions Procedure
The attorney examiner correctly declined to apply the square footage method of allocating home office costs where the organization failed to submit a timely written request to make the change. Sycamore Manor Health Ctr. v. Department of Public Welfare, 663 A.2d 820 (Pa. Cmwlth. 1995).
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