(1) The operations component rate allocation corresponds to the general operation of a nursing facility for one resident for one day, including but not limited to management, administration, utilities, office supplies, accounting and bookkeeping, minor building maintenance, minor equipment repairs and replacements, and other supplies and services, exclusive of direct care, therapy care, support services, property, financing allowance, and variable return.

     (2) The department shall determine each medicaid nursing facility's operations component rate allocation using cost report data specified by RCW 74.46.431(7)(a). Operations component rates for essential community providers shall be based upon a minimum occupancy of eighty-seven percent of licensed beds. Operations component rates for small nonessential community providers shall be based upon a minimum occupancy of ninety-two percent of licensed beds. Operations component rates for large nonessential community providers shall be based upon a minimum occupancy of ninety-five percent of licensed beds.

     (3) For all calculations and adjustments in this subsection, the department shall use the greater of the facility's actual occupancy or an occupancy equal to eighty-seven percent for essential community providers, ninety-two percent for small nonessential community providers, or ninety-five percent for large nonessential community providers. To determine each facility's operations component rate the department shall:

     (a) Array facilities' adjusted general operations costs per adjusted resident day, as determined by dividing each facility's total allowable operations cost by its adjusted resident days for the same report period for facilities located within urban counties and for those located within nonurban counties and determine the median adjusted cost for each peer group;

     (b) Set each facility's operations component rate at the lower of:

     (i) The facility's per resident day adjusted operations costs from the applicable cost report period adjusted if necessary for minimum occupancy; or

     (ii) The adjusted median per resident day general operations cost for that facility's peer group, urban counties or nonurban counties; and

     (c) Adjust each facility's operations component rate for economic trends and conditions as provided in RCW 74.46.431(7)(b).

     (4) The operations component rate allocations calculated in accordance with this section shall be adjusted to the extent necessary to comply with RCW 74.46.421.

[2011 1st sp.s. c 7 § 9; 2010 1st sp.s. c 34 § 16; 2007 c 508 § 5; 2006 c 258 § 7; 2001 1st sp.s. c 8 § 13; 1999 c 353 § 8; 1998 c 322 § 28.]

NOTES:

     Purpose -- Findings -- Intent -- Severability -- Effective date -- 2011 1st sp.s. c 7: See RCW 74.48.005, 74.48.900, and 74.48.901.

     Analysis -- 2011 1st sp.s. c 7: See note following RCW 74.46.431.

     Effective date -- 2010 1st sp.s. c 34: See note following RCW 74.46.010.

     Effective date -- 2007 c 508: See note following RCW 74.46.431.

     Effective date -- 2006 c 258: See note following RCW 74.46.020.

     Severability -- Effective dates -- 2001 1st sp.s. c 8: See notes following RCW 74.46.020.

     Effective dates -- 1999 c 353: See note following RCW 74.46.020.