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Title: Section 86-1.7 - Recoveries of expense

Effective Date


86-1.7 Recoveries of expense.

Operating costs shall be reduced by the cost of services and activities which are not properly chargeable to patient care. In the event that the State Commissioner of Health determines that it is not practical to establish the costs of such services and activities, the income derived therefrom may be substituted for costs of these services and activities. Examples of activities and services covered by this provision include:

(a) drugs and supplies sold for use outside the medical facility;

(b) telephone and telegraph services for which a charge is made;

(c) discount on purchases;

(d) living quarters rented to employees;

(e) employee cafeterias;

(f) meals provided to special nurses or patients' guests;

(g) operation of parking facilities for community convenience;

(h) lease of office and other space of concessionaires providing services not related to medical service;

(i) tuitions and other payments for educational service, room and board and other services not directly related to medical service.


VOLUME A-2 (Title 10)