Vermont § 905 - Basis for determination of nursing home rates

§ 905. Basis for determination of nursing home rates

• (a)(1) Consistent with the objectives established under section 901 of this title, the Division shall develop a payment system based on cost categories established
  for each nursing home. The system shall include no fewer than the following three
  cost categories: (A) direct care costs, which refer, at a minimum, to nursing salaries and nursing assistant
  wages, fringe benefits, and payroll taxes associated therewith; (B) indirect costs, which refer to all operating costs not established under subdivision
  (1) of this subdivision; and (C) property and related costs. (2) At the discretion of the Director, the cost categories referred to in subdivision
  (1) of this subsection may be subdivided. Facilities may also be divided into groups,
  based on considerations such as size or other appropriate determinants within each
  cost category or subdivision thereof. (b)(1) The basis for reimbursement within the direct care cost category shall be a resident
  classification system, which shall group residents into classes according to similarity
  of their assessed condition and required services. Each resident shall be assigned
  to one of no fewer than three classes, based on the nature and extent of nursing care
  needed. The Director may subdivide these classes. (2) The direct care component of a nursing home’s payment rate shall be reflective of
  the necessary professional and paraprofessional nursing staff time and costs required
  to address the care needs of the residents of the facility. (3) Assessments of residents for classification purposes shall be made on the basis of
  standardized information made available by each facility to the Division. Each nursing
  home shall assess all of its residents not less often than annually, in accordance
  with standards and a schedule developed by the Department of Disabilities, Aging,
  and Independent Living. The accuracy of the information shall be verified and final
  classifications made by the Department of Disabilities, Aging, and Independent Living.