2025 Session Last amended: 2019 session

§ 256R.21 — Total Payment Rate

Plain-Language Summary

The total payment rate for each nursing facility is made up of three parts: the operating payment rate (care-related costs plus other operating costs), external fixed costs, and property costs. Rates are calculated based on cost reports filed 15 months before the rate year.

Practical Notes
This section provides the formula for building a facility’s total daily rate. The care-related rate has two components: direct care and other care-related costs. New facilities follow a different process under section 256R.27. All rates are tied to a case mix index of 1.00 as the baseline.