Section 140.562  Nursing Costs

a)         The Department reimburses for nursing costs based on geographic area in which the facility is based, and the level of care the facility (or distinct part thereof) is licensed to provide.  Nursing costs also include an increment to reimburse for patients requiring skilled care for differences in support cost areas statistically related to variable patient conditions.  For residents in Skilled Nursing Facilities (SNF) and Intermediate Care Facilities (ICF), the Department reimburses for nursing costs according to Sections 140.900 through 140.907; for residents in Skilled Nursing Facilities for Pediatrics (SNF/PED) or Intermediate Care Facilities for the Medically Retarded (ICF/MR), the Department reimburses for nursing costs according to Sections 140.850 through 140.885.

b)         For the period July 1, 1986, through December 31, 1986, no facility's rate of reimbursement for Nursing Services shall be less than 90% of the rate of reimbursement for Nursing Services that facility received for the period January 1, 1986, through June 30, 1986.

c)         For the period July 1, 1986 through December 31, 1986, the Department shall perform an additional computation for the rate of reimbursement for Nursing Services.

1)         For intermediate and skilled care facilities, the additional computation is as follows:

A)        Unadjusted nursing rates will be computed according to Section 140.905.

B)        The unadjusted nursing rate will be compared to 90 percent of the previous effective rate for Nursing Services for each facility.  The greater of the two rates will be the "hold harmless" nursing rate.

C)        The mean difference between the "hold harmless" nursing rates and the previous effective nursing rates will be computed for each HSA area.  This difference will be an interim base for the HSA area.

D)        The adjusted nursing rate will be the sum of the "hold harmless" nursing rate and the interim base rate.

2)         For intermediate and skilled care facilities for the developmentally disabled, the additional computation is as follows:

A)        Unadjusted nursing rates will be computed according to Section 140.885.

B)        The mean difference between the unadjusted nursing rates and the previous effective nursing rates will be computed for each licensure group.  This difference will be an interim base rate for the licensure group.

C)        The adjusted nursing rate will be the sum of the unadjusted nursing rate and the interim base rate.

d)         For the period January 1, 1987 through June 30, 1987, the nursing rate component for any skilled and intermediate care facility (not including facilities for the developmentally disabled) will be the higher of either the rate for the prior rate period (July 1, 1986 through December 31, 1986) or the rate as calculated according to Subpart G.

e)         For the period January 1, 1987 through June 30, 1987, the nursing rate component for facilities for the developmentally disabled will be the same as for the prior rate period (July 1, 1986 through December 31, 1986).

f)         For the period July 1, 1987, through December 31, 1987, the nursing rate component (updated for wage inflation from January 1, 1987, through January 1, 1988, as computed in Sections 140.909(b)(1)(A)(iv) and (v) for long term care facilities for the developmentally disabled will be the same as for the prior rate period (January 1, 1987, through June 30, 1987).

g)         For the period January 1, 1988 through June 30, 1988, the nursing rate component for facilities for the developmentally disabled will be the same as for the prior rate period (July 1, 1987 through December 31, 1987).

(Source:  Amended at 16 Ill. Reg. 6408, effective March 20, 1992)