OAR 411-070-0400
Equity

Equity is not an allowable expense for reimbursement but must be reported. Equity capital is the net worth of the provider (owner’s equity in the net assets as determined under these rules), adjusted for those assets and liabilities that are not related to the provision of resident care:

(1)

Generally accepted accounting principles are to be used unless otherwise specified in these rules for computing owner’s equity.

(2)

Assets and liabilities not related to providing resident care are not includable in the provider’s equity capital.

(3)

Loans from owners or related entities are considered as invested equity capital of the provider.

(4)

Owner’s equity in assets leased from related entities is includable in the equity capital of a proprietary provider.

(5)

Goodwill is not includable as part of owner’s equity.

(6)

Invested funds that are diverted to income producing activities that are not resident related for more than six months will not be included as part of owner’s equity.

(7)

Amounts deposited in a funded depreciation account and the earnings on deposits are not included in equity capital. Interest earned on these funds is not offset against interest expense.

(8)

Land, buildings, and other assets acquired in anticipation of expansion are not includable in equity capital. Construction-in-process and liabilities related to such construction are not includable in equity capital.

(9)

Prepaid premiums on life insurance carried by a provider on officers and key employees, where the provider is designated as the beneficiary, are not included when computing equity capital.

(10)

The costs of noncompetitive agreements are not includable in equity capital.

(11)

The amount deposited and the earnings on self-insurance reserve funds are not includable in equity capital.

(12)

When an asset is totally or partially destroyed by a casualty, the unrecovered loss is not included in equity capital.

(13)

Working capital, defined as the difference between current assets and current liabilities, must be adjusted by any amount considered to be excessive for the necessary and proper operation of resident care activities. The excessive amount will not be included in equity capital.

(14)

The cash surrender value of insurance is not includable in equity capital.

(15)

Imputed salaries for proprietors will be offset in computing the equity capital.

(16)

Any portion of an acquisition cost, incurred on or after July 18, 1984, that exceeds the depreciable basis is not includable in the owner’s equity calculation.

Source: Rule 411-070-0400 — Equity, https://secure.­sos.­state.­or.­us/oard/view.­action?ruleNumber=411-070-0400.

411‑070‑0000
Purpose 411‑070‑0005
Definitions 411‑070‑0010
Conditions for Payment 411‑070‑0015
Denial, Termination or Non-Renewal of Provider Agreement 411‑070‑0020
On-Site Reviews 411‑070‑0025
Basic Flat Rate Payment (Basic Rate) 411‑070‑0027
Complex Medical Add-On Payment 411‑070‑0028
Bariatric Authorization and Payment 411‑070‑0029
Pediatric Rate 411‑070‑0033
Post Hospital Extended Care Benefit 411‑070‑0035
Complex Medical Add-On Effective Start and End Dates and Administrative Review 411‑070‑0040
Screening, Assessment, and Resident Review 411‑070‑0043
Pre-Admission Screening and Resident Review (PASRR) 411‑070‑0045
Facility Payments 411‑070‑0050
Days Chargeable 411‑070‑0075
Rates - Facilities in Oregon 411‑070‑0080
Out-of-State Rates 411‑070‑0085
Bundled Rate 411‑070‑0087
Bariatric Criteria and Services 411‑070‑0091
Complex Medical Add-On Services 411‑070‑0092
Ventilator Assisted Program - Medicaid Payment 411‑070‑0095
Resident Funds 411‑070‑0100
Audit of Personal Incidental Funds 411‑070‑0105
Resident Property Records 411‑070‑0110
Temporary Absence from Facility (Bedhold) 411‑070‑0115
Transfer of Residents 411‑070‑0120
Discharge of Residents 411‑070‑0125
Medicare, (Title XVIII) 411‑070‑0130
Medicaid Payment in Hospitals 411‑070‑0140
Hospice Services 411‑070‑0300
Filing of Financial Statement 411‑070‑0302
Filing of Revised Financial Statements 411‑070‑0305
Accounting and Record Keeping 411‑070‑0310
Auditing 411‑070‑0315
Maximum Allowable Compensation of Administrator 411‑070‑0320
Consultants 411‑070‑0330
Owner Compensation 411‑070‑0335
Related Party Transactions 411‑070‑0340
Chain Operations 411‑070‑0345
Allocation of Home Office and Regional Office Costs 411‑070‑0350
Management Fees 411‑070‑0359
Allowable Costs 411‑070‑0365
Capital Assets 411‑070‑0370
Depreciable Assets 411‑070‑0375
Depreciation Basis 411‑070‑0385
Depreciation Lives 411‑070‑0400
Equity 411‑070‑0415
Offset Income 411‑070‑0417
Treatment of Complex Medical Add-Ons 411‑070‑0420
Base Year Cost Finding 411‑070‑0425
Resident Days 411‑070‑0430
Allocation Methods 411‑070‑0435
Appeals 411‑070‑0437
Quality and Efficiency Incentive Program 411‑070‑0439
COVID-19 Emergency Response Incentive Program 411‑070‑0442
Calculation of the Basic Rate, Complex Medical Rate, Bariatric Rate and Ventilator Assisted Program Rate 411‑070‑0452
Pediatric Nursing Facilities 411‑070‑0464
Final Report 411‑070‑0465
Uniform Chart of Accounts 411‑070‑0470
Nursing Assistant Training and Competency Evaluation Programs Request for Reimbursement
Last Updated

Jun. 8, 2021

Rule 411-070-0400’s source at or​.us