Nev. Admin. Code § 363C.230 — 363C.230

NAC 363C.230    Calculation of uncompensated care deduction for health care
providers. ( NRS
360.090 , 363C.100 , 363C.210 )
1.  For the purpose of calculating the amount
of the deduction from gross revenue set forth in paragraphs (i) and (j) of
subsection 1 of NRS 363C.210 ,
the actual cost to a health care provider for uncompensated care is an amount
equal to the operating expenses of the health care provider for the most recent
federal tax year of the health care provider, multiplied by:
(a) The uncompensated care ratio of the health care
provider calculated for the most recent federal tax year of the health care
provider; or
(b) If the health care provider elects to use the
uncompensated care ratio calculated for the most recent report filed by the
health care provider pursuant to subsection 3 of NRS 449.490 , the uncompensated care
ratio calculated for that report. A health care provider that elects to use the
uncompensated care ratio described in this subsection shall maintain sufficient
records to verify the validity of the calculation of the uncompensated care
ratio.
2.  A health care provider shall maintain for
all uncompensated care a record of the service provided, the standard charge
for the service and the payments received by the health care provider for the
service.
3.  As used in this section:
(a) “Health care provider” has the meaning ascribed
to it in NRS 363C.210 .
(b) “Operating expenses” means:
(1) The amount reported on lines 2 and 21 of
Form 1065, U.S. Return of Partnership Income, or its equivalent or successor
form;
(2) The amount reported on lines 2 and 20 of
Form 1120S, U.S. Income Tax Return for an S Corporation, or its equivalent or
successor form; or
(3) The corresponding line item from any other
federal tax form filed by the health care provider,
Ê with respect
to services sitused to this State pursuant to NAC
363C.490 , less any such amounts that have been deducted from its gross
revenue pursuant to subsection 1 of NRS
363C.210 , including, without limitation, bad debts.
(c) “Uncompensated care charges” means an amount
equal to the standard charge for health care services for which the health care
provider has not received any payment or for which the health care provider has
received partial payment that does not cover the cost of the health care
services provided to the patient, excluding any portion of a charge that the
health care provider has no right to collect under a private health care plan,
under an agreement with a patient for a specific amount or under the charge limitations
imposed by a program described in subparagraphs (1), (2) and (3) of paragraph
(i) of subsection 1 of NRS
363C.210 . For the purposes of this paragraph, the standard charge for health
care services must be comparable to the charges applied to health care services
provided to all patients of the health care provider.
(d) “Uncompensated care ratio” means the ratio
equal to uncompensated care charges, less the amounts received toward
uncompensated care charges that do not cover the cost of the health care
services provided to a patient, divided by the total charges for all health
care services, including, without limitation, uncompensated care charges.
(Added to NAC by Tax Comm’n by R123-15, eff. 6-28-2016)