OAR 410-147-0540
Related Party Transactions


(1)

A “related party” is an individual or organization that is associated or affiliated with, or has control of, or is controlled by the federally qualified health center (FQHC) or rural health clinic (RHC) furnishing the services, facilities, or supplies:

(a)

“Common ownership” exists if an individual or individuals possess significant ownership or equity in the provider and the institution or organization serving the provider;

(b)

“Control” exists if an individual or an organization has the power, directly or indirectly, significantly to influence or direct the actions or policies of an organization or institution.

(2)

Division of Medical Assistance Programs (Division) allows costs applicable to services, facilities, and supplies furnished to the FQHC or RHC by a related party at the lower of cost, excluding profits and markups to the related party, or charge to the clinic. Such costs are allowable in accordance with 42 CFR 413.17, to the extent that they:

(a)

Relate to Title XIX and Title XXI client care;

(b)

Are reasonable, ordinary, and necessary; and

(c)

Are not in excess of those costs incurred by a prudent cost-conscious buyer.

(7)

If all of these conditions are not met, none of the costs of the related party transaction can be reported as reimbursable costs on the FQHC or RHC’s cost statement report.

Source: Rule 410-147-0540 — Related Party Transactions, .

Last Updated

Jun. 8, 2021

Rule 410-147-0540’s source at