Section 86-5.22 - Return on investment for proprietary LTHHCPs

86-5.22 Return of investment for proprietary LTHHCPs.

(a) In computing the allowable costs of a proprietary LTHHCP, there shall be included a reasonable return on average equity capital. The percentage to be used in computing this allowance shall be a rate determined annually by the commissioner as reasonably related to the then current money market.

(b) The average equity capital associated with the LTHHCP shall be that amount that is allocated from a related organization to the extent that the bases of allocation of average equity capital to the LTHHCP are consistent with regulations applicable to cost reporting of the related organization.
 

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