FAIR RENTAL VALUE (FRV) RATE APPEAL


Increasing FRV for Renovations, Remodeling and Adding Beds

According to the Medicaid Services Manual and Nevada Medicaid State Plan, a FRV reimbursement will be used to determine each facility’s capital rate. Each facility’s FRV rates are determined on the basis of allowable depreciation, capital related interest, rent/lease, and amortization expenses. The FRV of each facility will be adjusted to reflect the cost of major renovation projects completed within a 24-month period. The renovation adjustment would be made on July 1 following completion of the project.