§ 74.46.280. Management fees, agreements -- Limitation on scope of services
(1) Management fees will be allowed only if:
(a) A written management agreement both creates a principal/agent relationship between the contractor and the manager, and sets forth the items, services, and activities to be provided by the manager; and
(b) Documentation demonstrates that the services contracted for were actually delivered.
(2) To be allowable, fees must be for necessary, nonduplicative services.
(3) A management fee paid to or for the benefit of a related organization will be allowable to the extent it does not exceed the lower of the actual cost to the related organization of providing necessary services related to patient care under the agreement or the cost of comparable services purchased elsewhere. Where costs to the related organization represent joint facility costs, the measurement of such costs shall comply with RCW 74.46.270.
(4) A copy of the agreement must be received by the department at least sixty days before it is to become effective. A copy of any amendment to a management agreement must also be received by the department at least thirty days in advance of the date it is to become effective. Failure to meet these deadlines will result in the unallowability of cost incurred more than sixty days prior to submitting a management agreement and more than thirty days prior to submitting an amendment.
(5) The scope of services to be performed under a management agreement cannot be so extensive that the manager or managing entity is substituted for the contractor in fact, substantially relieving the contractor/licensee of responsibility for operating the facility.
[1998 c 322 § 15; 1993 sp.s. c 13 § 4; 1980 c 177 § 28.]
Notes:
Effective date -- 1993 sp.s. c 13: See note following RCW 74.46.020.
Sections: Previous 74.46.190 74.46.200 74.46.220 74.46.230 74.46.240 74.46.250 74.46.270 74.46.280 74.46.290 74.46.300 74.46.310 74.46.320 74.46.330 74.46.340 74.46.350 Next
Last modified: April 7, 2009