<html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><title></title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s15c10eb2-b6f0-44fa-bb04-048a412c9b6aP0 { margin-top: 0; margin-bottom: 0; margin-left: 0; margin-right: 0; text-indent: 0.00in; text-align: justify; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; } span.s15c10eb2-b6f0-44fa-bb04-048a412c9b6aC0 { color: #000000; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s15c10eb2-b6f0-44fa-bb04-048a412c9b6aC0-000000 { color: #0000FF; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s15c10eb2-b6f0-44fa-bb04-048a412c9b6aC0-000001 { color: #000000; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s15c10eb2-b6f0-44fa-bb04-048a412c9b6a000002 { color: #000000; background: white; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s15c10eb2-b6f0-44fa-bb04-048a412c9b6aC0-000003 { color: #0000FF; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aP0"><span xml:space="preserve" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aC0">    </span><a href="https://sdlegislature.gov/Rules?Rule=67:16:04:33"><span class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aC0-000000">67:16:04:33</span></a><span class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aC0-000001">.  Definitions.</span><span xml:space="preserve" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aC0"> Terms used in this chapter mean:</span></p><p dir="ltr" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aP0"><span xml:space="preserve" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6a000002"> </span></p><p dir="ltr" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aP0"><span xml:space="preserve" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aC0">    (1)  "Administration costs," costs defined in the statistical and cost summary report </span><span class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aC0">that relate to patient care and includes</span><span xml:space="preserve" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aC0"> the administrator's and assistant administrator's salaries, administrative travel, office salaries, office supplies and expenses, central office and home office expenses, dues, fees, subscriptions, professional license fees, and legal and accounting expense;</span></p><p dir="ltr" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aP0"><span xml:space="preserve" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6a000002"> </span></p><p dir="ltr" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aP0"><span xml:space="preserve" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aC0">    (2)  "Capital costs," costs associated with building insurance, building depreciation, furniture and equipment depreciation, amortization of organization and preoperating costs, mortgage interest, rent on the facility and grounds, equipment rent, and return on net equity;</span></p><p dir="ltr" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aP0"><span xml:space="preserve" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6a000002"> </span></p><p dir="ltr" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aP0"><span xml:space="preserve" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aC0">    (3)  "Case mix," the mixture of residents of different classifications within a nursing facility;</span></p><p dir="ltr" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aP0"><span xml:space="preserve" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6a000002"> </span></p><p dir="ltr" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aP0"><span xml:space="preserve" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aC0">    (4)  "Case mix score," the average of the </span><span xml:space="preserve" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aC0">Patient Driven Payment Model nursing case mix group </span><span class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aC0">weights for residents in a facility over a particular time period;</span></p><p dir="ltr" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aP0"><span xml:space="preserve" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6a000002"> </span></p><p dir="ltr" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aP0"><span xml:space="preserve" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aC0">    (5)  "Chain organization," a group of two or more health care facilities that are owned, leased, or otherwise controlled by one organization;</span></p><p dir="ltr" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aP0"><span xml:space="preserve" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6a000002"> </span></p><p dir="ltr" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aP0"><span xml:space="preserve" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aC0">    (6)  "Desk audit," a review of the statistical and cost reports to determine omissions, erroneous calculations, reasonableness of selected cost items, and compliance with other reporting requirements </span><span class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aC0">before</span><span xml:space="preserve" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aC0"> establishing a database from which per diem rates are established;</span></p><p dir="ltr" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aP0"><span xml:space="preserve" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6a000002"> </span></p><p dir="ltr" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aP0"><span xml:space="preserve" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aC0">    (7)  "Field audit," a comprehensive</span><span class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aC0">,</span><span xml:space="preserve" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aC0"> on-site review of the statistical and cost reports to determine omissions, erroneous calculations, reasonableness of selected cost items, and compliance with other reporting requirements </span><span class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aC0">before</span><span xml:space="preserve" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aC0"> establishing a database from which per diem rates are established;</span></p><p dir="ltr" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aP0"><span xml:space="preserve" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6a000002"> </span></p><p dir="ltr" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aP0"><span xml:space="preserve" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aC0">    (8)  "Hospital-affiliated nursing facility," a licensed nursing facility that is under common ownership with</span><span class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aC0">,</span><span xml:space="preserve" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aC0"> is operated by the same administrative authority as</span><span class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aC0">,</span><span xml:space="preserve" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aC0"> </span><span xml:space="preserve" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aC0">and shares on a daily basis common services areas with, </span><span class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aC0">the licensed hospital</span><span class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aC0">,</span><span xml:space="preserve" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aC0"> and </span><span class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aC0">that</span><span xml:space="preserve" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aC0"> is required to use the stepdown method of allocation required by Medicare if the stepdown results in part of the cost of the shared areas being allocated between the hospital and the nursing facility</span><span class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aC0">,</span><span xml:space="preserve" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aC0"> and the stepdown numbers are the numbers used for Medicare reimbursement;</span></p><p dir="ltr" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aP0"><span xml:space="preserve" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6a000002"> </span></p><p dir="ltr" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aP0"><span xml:space="preserve" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aC0">    (</span><span class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aC0">9</span><span xml:space="preserve" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aC0">)  "Nursing facility," any facility that is licensed, maintained, and operated for the express or implied purpose of providing care to one or more persons, whether for consideration or not, who are not acutely ill but require nursing care and related medical services of such complexity as to require professional nursing care under the direction of a physician </span><span class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aC0">twenty-four</span><span xml:space="preserve" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aC0"> hours a day;</span></p><p dir="ltr" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aP0"><span xml:space="preserve" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6a000002"> </span></p><p dir="ltr" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aP0"><span xml:space="preserve" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aC0">    (1</span><span class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aC0">0</span><span class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aC0">)  "Over-the-counter medications," medications that can be purchased by the general public without a physician</span><span xml:space="preserve" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aC0"> or other licensed practitioner's</span><span xml:space="preserve" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aC0"> prescription;</span></p><p dir="ltr" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aP0"><span xml:space="preserve" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6a000002"> </span></p><p dir="ltr" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aP0"><span xml:space="preserve" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aC0">    (11)  "Patient Driven Payment Model," the relative ratio of resources required to care for one class of residents when compared to another class of residents as measured by the resident assessment using the nursing case mix group;</span></p><p dir="ltr" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aP0"><span xml:space="preserve" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6a000002"> </span></p><p dir="ltr" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aP0"><span xml:space="preserve" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aC0">    (12)  "Related-party transaction," a business transaction between parties having a common ownership or control interest;</span></p><p dir="ltr" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aP0"><span xml:space="preserve" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6a000002"> </span></p><p dir="ltr" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aP0"><span xml:space="preserve" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aC0">    (13)  "Resident assessment," a comprehensive assessment of a nursing facility resident completed under § </span><a href="https://sdlegislature.gov/Rules?Rule=44:73:06:10"><span class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aC0-000003">44:</span><span class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aC0-000003">73:06:10</span></a><span class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aC0">;</span></p><p dir="ltr" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aP0"><span xml:space="preserve" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6a000002"> </span></p><p dir="ltr" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aP0"><span xml:space="preserve" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aC0">    (14)  "Routine services," services and items necessary </span><span class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aC0">for</span><span xml:space="preserve" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aC0"> the care, treatment, and comfort of </span><span class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aC0">a</span><span xml:space="preserve" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aC0"> resident;</span></p><p dir="ltr" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aP0"><span xml:space="preserve" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6a000002"> </span></p><p dir="ltr" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aP0"><span xml:space="preserve" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aC0">    (15)  "Salvage value," the estimated value of a depreciable asset at the end of its useful life. The </span><span class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aC0">value</span><span xml:space="preserve" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aC0"> is estimated at the time of acquisition or construction and is deducted from the cost of the depreciable property to arrive at the basis for depreciation;</span></p><p dir="ltr" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aP0"><span xml:space="preserve" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6a000002"> </span></p><p dir="ltr" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aP0"><span xml:space="preserve" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aC0">    (16)  "Stepdown method of allocation," an accounting methodology in which costs flow from nonrevenue-producing cost centers to revenue-producing cost centers. On ledgers showing this allocation, the lists of numbers take on a visual tiering appearance from the left of the page to the right;</span></p><p dir="ltr" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aP0"><span xml:space="preserve" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6a000002"> </span></p><p dir="ltr" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aP0"><span xml:space="preserve" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aC0">    (17)  "Straight-line depreciation method," a procedure followed in depreciation computations that assigns equal segments of the cost of an item to the benefits to be yielded by the item, often over a period of time; and</span></p><p dir="ltr" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aP0"><span xml:space="preserve" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6a000002"> </span></p><p dir="ltr" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aP0"><span xml:space="preserve" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aC0">    (18)  "Swing-bed hospital," an acute care general hospital that has been approved by the Department of Health to provide short-term nursing facility services in a portion of its licensed hospital beds pending the availability of a nursing facility bed.</span></p><p dir="ltr" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aP0"><span xml:space="preserve" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6a000002"> </span></p><p dir="ltr" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aP0"><span xml:space="preserve" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aC0">    </span><span class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aC0-000001">Source:</span><span xml:space="preserve" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aC0"> SL 1975, ch 16, § 1; 1 SDR 30, effective October 13, 1974; 2 SDR 16, effective September 4, 1975; 7 SDR 66, 7 SDR 89, effective July 1, 1981; 11 SDR 26, effective August 21, 1984; 15 SDR 68, effective November 7, 1988; 16 SDR 26, effective August 13, 1989; 18 SDR 67, effective October 13, 1991; transferred from § </span><a href="https://sdlegislature.gov/Rules?Rule=67:16:04:01"><span class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aC0-000003">67:16:04:01</span></a><span class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aC0">, 21 SDR 8, effective July 25, 1994; 24 SDR 185, effective July 6, 1998; 26 SDR 5, effective July 1, 1999; 26 SDR 21, effective August 24, 1999; 35 SDR 312, effective July 6, 2009; 44 SDR 94, effective December 4, 2017</span><span class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aC0">; 50 SDR 11, effective August 7, 2023</span><span class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aC0">.</span></p><p dir="ltr" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aP0"><span xml:space="preserve" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aC0">    </span><span class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aC0-000001">General Authority:</span><span xml:space="preserve" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aC0"> SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=28-6-1"><span class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aC0-000003">28-6-1</span></a><span class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aC0">.</span></p><p dir="ltr" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aP0"><span xml:space="preserve" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aC0">    </span><span class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aC0-000001">Law Implemented:</span><span xml:space="preserve" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aC0"> SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=28-6-1"><span class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aC0-000003">28-6-1</span></a><span class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aC0">(4)</span><span class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aC0">.</span></p><p dir="ltr" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6aP0"><span xml:space="preserve" class="s15c10eb2-b6f0-44fa-bb04-048a412c9b6a000002"> </span></p></div></body></html>