§ 4300.144. Costs to related parties.

 (a)  Costs of goods or services furnished to a program by a related organization are allowable at the lower of the allowable cost to the related organization or the market price of comparable goods or services available in the provider’s Departmental region.

 (b)  Interest expense is not allowable if it is paid to a lender related through control, ownership or personal relationship to the borrowing organization. The Department will participate in the cost of an interest expense only with the prior written approval of the Secretary or a designee.

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