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committee included SNF, ALU, and SCU operating expenses, and
subtracted out noncontract patient fees and depreciation and
amortization allocable to the three facilities. The committee
then made certain upward adjustments to account for the
emergency-pull-cord system, food service, environmental service,
utilities, and insurance. The adjustments for food service and
environmental expenses were based on formulas provided by the
food service contractor and the environmental service contractor.
The adjustment for utilities was based on a square-footage method
and the adjustment for the insurance was based on a ratio- and
square-footage methodology.
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