Dear Administrator: Clarification Letter for Related Entity Cost Reports
August 7, 2007
Re: Related Entity Cost Reports
Dear Administrator:
This letter is to clarify the Department's position relative to the cost reporting requirements for related companies as defined in Section 86-2.26 of Title 10 NYCRR.
Section 86-2.2 (a) requires that facilities provide the applicable statistical and financial information on a calendar year basis except for those facilities filing in accordance with Section 86-2.10(k). Facilities meeting the requirements of Section 86-2.10(k) must file in accordance with Section 86-2.2(e).
In the past, the Department has accepted related company cost report information on a fiscal year basis under Section 86-2.2(e). In order to more appropriately reimburse operating costs of the related entity for facilities receiving rate adjustments pursuant to 86-2.10(k) all cost reporting must be for a consistent period for all entities filing a twelve month cost report in accordance with Section 86-2.2(e). This will be effective for all cost reports filed subsequent to the date of this letter, which have not already been assigned an appeal control number. Any facility filing a cost report with related company costs that do not match the period of the RHCF-4 cost report will have that cost report rejected as being inaccurate.
If you have any questions, please contact Michael Blinstrub of my staff at (518) 473-8910.
Sincerely,
Kathleen E. Gill
Director
Bureau of Long Term Care Reimbursement
