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inappropriate, we accept the allocations to the pull-cord system
and the other adjustments made by the ad hoc committee.
4. SNF Ancillary Services, Medicare, and HMO
Billings, and ALU and SCU Noncontract Patient Fees
In his calculations, Mr. Powell excluded from both total
costs and medical costs expenses for SNF ancillary services,
Medicare, and HMO billings for AFVW residents and noncontract
patients, and ALU and SCU noncontract patient fees. However, Mr.
Powell stated that he could not obtain an accurate amount of SNF
ancillary services, Medicare, and HMO billings for AFVW
residents, and therefore he did not exclude any amount in his
calculations. Respondent has not specifically argued or provided
any amount that we should exclude for SNF ancillary service,
Medicare, and HMO billings for AFVW residents. Accordingly, we
need only address the remaining items as they relate to whether
expenses related to noncontract patients should be excluded from
total costs and medical expenses.
Both the ad hoc committee and Mr. Powell subtracted
noncontract patient fees related to the SNF from total costs and
medical costs. The committee also subtracted noncontract patient
fees related to the ALU and SCU. After reviewing Mr. Powell’s
reasoning and respondent’s arguments (discussed in further detail
below) with respect to expenses and reimbursements related to
noncontract patients, we infer that this was an oversight on the
part of Mr. Powell, and the committee’s position on this issue is
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