441—85.25 (249A) Reimbursement to psychiatric medical institutions for children.
	 85.25(1) Computation of inpatient rate. Facilities are paid at a per diem rate based on the facility’s actual and allowable cost for the service not to exceed the upper limit as provided in 441—subrule 79.1(2).
	  a.   	 Rates for new facilities are based on historical costs submitted on Form 470-0664, Financial and Statistical Report for Purchase of Service Contracts, if the institution is established and has the historical data. If the institution is newly established, the rate shall be based on a proposed budget submitted on Form 470-0664. A Form 470-0664 with actual cost data shall be submitted after at least six months of participation in the program for a new rate adjustment.
	  b.   	 After the initial cost report period, the institution shall submit Form 470-0664 annually within three months of the close of the facility’s fiscal year. Failure to submit the report within this time shall reduce payment to 75 percent of the current rate. The reduced rate shall be paid for no longer than three months, after which time no further payments will be made.
	  c.   	 For services rendered on or after August 1, 2011, rates paid shall be adjusted to 100 percent of the facility’s actual and allowable average costs per patient day, based on the cost information submitted pursuant to paragraphs 85.25(1)“a” and “b,” subject to the upper limit provided in 441—subrule 79.1(2) for non-state-owned facilities. Before rate adjustment, providers shall be paid a prospective interim rate equal to the previous year’s retrospectively calculated unit-of-service rate.
	 85.25(2) Reserve bed payments.
	  a.   	 Reserve bed day payment for days a resident of a psychiatric medical institution for children is absent from the facility for hospitalization in an acute care general hospital is paid in accordance with the following policies:
	 (1) 	 The intent of the department and the facility shall be for the resident to return to the facility after the hospitalization.
	 (2) 	 Staff from the psychiatric medical institution shall be available to provide support to the child and family during the hospitalization.
	 (3) 	 Payment for reserve bed days shall be canceled and payment returned if the facility refuses to accept the child back except when the department and the facility agree that the return would not be in the child’s best interests. If the department and the facility agree that the return would not be in the child’s best interests, payment shall be canceled effective the day after the joint decision not to return the child.
	 (4) 	 Payment will not be authorized for over ten days per calendar month and will not be authorized for over ten days for any continuous hospital stay.
	  b.   	 Reserve bed days for visitation shall be made for days a resident is absent from a psychiatric medical institution for children at the time of a nightly census for the purpose of visitation when the absence is in accordance with the following policies:
	 (1) 	 The visits are consistent with the child’s case permanency plan and the facility’s individual case plan.
	 (2) 	 The intent of the department and the facility shall be for the child to return to the facility after the visitation.
	 (3) 	 Staff from the psychiatric medical institution shall be available to provide support to the child and family during the visit.
	 (4) 	 Payment for reserve bed days shall be canceled and payments returned if the facility refuses to accept the child back except when the department and the facility agree that the return would not be in the child’s best interests. If the department and the facility agree that the return would not be in the child’s best interests, payment shall be canceled effective the day after the joint decision not to return the child.
	 (5) 	 Payment for reserve bed days shall be canceled effective the day after a decision not to return the child is made by the court or, in a voluntary placement, by the parent.
	 (6) 	 Payment for reserve bed days shall not exceed 14 consecutive days or 30 days per year, except upon written approval of the regional administrator. In no case shall payment exceed 60 days per year for visitation or other absences.
	  c.   	 Reserve bed payment shall be made for days a resident is absent from a psychiatric medical institution for children at the time of the nightly census for reasons such as detention, shelter care, or running away when the absence is in accordance with the following policies:
	 (1) 	 The intent of the department and the psychiatric medical institution for children shall be for the child to return to the facility after the absence.
	 (2) 	 Payment for reserve bed days shall be canceled and payments returned if the facility refuses to accept the child back except when the department and the facility agree that the return would not be in the child’s best interests. If the department and the facility agree that the return would not be in the child’s best interests, payment shall be canceled effective the day after the joint decision not to return the child.
	 (3) 	 Payment for reserve bed days shall be canceled effective the day after a decision is made not to return the child by the court or, in a voluntary placement, by the parent.
	 (4) 	 Payment for reserve bed days shall not exceed 14 consecutive days or 30 days per year, except upon written approval of the regional administrator. In no case shall payment exceed 60 days per year for visitation or other absences.
	 (5) 	 Reserve bed day payment is not available until the child has been physically admitted to the psychiatric medical institution.
	 (6) 	 The psychiatric medical institution shall notify the department social worker within 24 hours after the child is out of the facility for running away or other unplanned reasons.
	 85.25(3) Day treatment rates. Outpatient day treatment services are paid on a fixed fee basis.
[ARC 8649B, IAB 4/7/10, effective 3/11/10; ARC 8899B, IAB 6/30/10, effective 7/1/10; ARC 9176B, IAB 11/3/10, effective 12/8/10; ARC 9710B, IAB 9/7/11, effective 8/17/11]