Title: Section 86-4.25 - Return on investment

86-4.25 Return on investment.

(a) In computing the allowable costs of a proprietary facility, there shall be included an allowance for a reasonable return on the average equity capital representing the owner's investment for the provisions of patient care. The percentage to be used in computing the allowance shall be a rate determined annually by the commissioner to be reasonably related to the then current money market.

(b) Equity capital is the net worth of the provider adjusted for those assets and liabilities which are not related to the provision of patient care. Equity capital consists of the provider's investment in plant, property and equipment, net of depreciation and noncurrent debt related to the investment or deposited funds, and net working capital for necessary and proper operation of patient care activities.
 

Volume

VOLUME A-2 (Title 10)

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