An incentive payment will be included in the reimbursable costs of Level II providers that sufficiently contain costs and maintain an average occupancy rate of 80% or greater. Skilled providers with operating costs less than the maximum reimbursable rate shall be eligible to receive a fifty percent (50%) cost-containment incentive for every dollar they are below the maximum reimbursement rate, limited to three dollars per patient day and by the maximum reimbursement rate. Operating costs are defined as total costs less capital-related costs.
Tenn. Comp. R. & Regs. 1200-13-08-.14
Authority: T.C.A. §§ 4-5-202, 12-4-301, 71-5-105, and 71-5-109.