§ 40-8-20.1 - Prospective rate increments.
SECTION 40-8-20.1
§ 40-8-20.1 Prospective rate increments.– The department may consider the granting of a prospective rate that reflectsdemonstrated cost increases in excess of the rate that has been established bythe application of the percentage increase. In order to qualify for the rateincrement, demonstrated increased costs must be the result of:
(a) Demonstrated errors made during the rate determinationprocess;
(b) Significant increases in operating costs resulting fromthe implementation of new or additional programs, services or staffspecifically mandated by the Rhode Island department of health;
(c) Significant increases in operating costs resulting fromcapital renovations, expansion, or replacement required for compliance withfire safety codes and/or certification requirements of the Rhode Islanddepartment of health, as well as increased energy costs which the facility candemonstrate are a result of the facility having expended funds for heating,lighting, hot water, and similar costs associated with the consumption ofenergy provided by public utilities;
(d) Significant increases in workers' compensation and/orhealth insurance premiums which cannot be accommodated within the nursingfacility's assigned aggregate per diem rate, if cost justified; provided, thatassigned per diem rate in the labor and payroll related expenses cost centerdoes not exceed two percent (2%) of the cost center ceiling; or
(e) Extraordinary circumstances, including, but not limitedto, acts of God, and inordinate increases in energy costs (e.g. federal BTUtax, regional or national energy crisis). Inordinate increases in energy costswill be immediately reflected in increased rates above the energy cost centerceiling maximum. Provided, however, that such increases will be rescindedimmediately upon cessation of the extraordinary circumstance. All requests forrate increments shall be limited to one request per nursing facility for thefactors set forth in subsections (b) and (c); provided, additional requestsinvolving a per diem increase in excess of one percent of the nursingfacility's previously assigned aggregate per diem rate shall also be reviewed.Before a nursing facility shall be permitted to file for a rate increment,increases in operating costs set forth in subsections (b) and (c) must havebeen incurred for a period of not less than three (3) months in order toestablish proof of the increase. Rate adjustments granted as a result of arequest filed within one hundred twenty (120) days after the costs were firstincurred shall be made effective retroactively to the date the costs wereactually incurred; provided, further, any adjustments granted as a result ofrequests filed more than one hundred twenty (120) days after the costs werefirst incurred will be effective on the first day of the month following thefiling of the request.