§ 5-5.3. Conditions of Payment--Prospective Rates--Accounting Principles. This amendatory Act establishes certain conditions for the Department of Healthcare
and Family Services in instituting rates for the care of recipients of medical assistance
in nursing facilities and ICF/DDs. Such conditions shall assure a method under which the payment for nursing facility
and ICF/DD services provided to recipients under the Medical Assistance Program shall
be on a reasonable cost related basis, which is prospectively determined at least
annually by the Department of Public Aid (now Healthcare and Family Services). The annually established payment rate shall take effect on July 1 in 1984 and subsequent
years. There shall be no rate increase during calendar year 1983 and the first six months
of calendar year 1984.
The determination of the payment shall be made on the basis of generally accepted
accounting principles that shall take into account the actual costs to the facility
of providing nursing facility and ICF/DD services to recipients under the medical
The resultant total rate for a specified type of service shall be an amount which
shall have been determined to be adequate to reimburse allowable costs of a facility
that is economically and efficiently operated. The Department shall establish an effective date for each facility or group of facilities
after which rates shall be paid on a reasonable cost related basis which shall be
no sooner than the effective date of this amendatory Act of 1977.
On and after July 1, 2012, the Department shall reduce any rate of reimbursement for
services or other payments or alter any methodologies authorized by this Code to reduce
any rate of reimbursement for services or other payments in accordance with Section
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