November 21, 2024

State of Alabama
Press Release: Medicaid

Facility Renovation Procedure and Forms

PDF Version

TO:  Skilled Nursing Facilities

RE:  Facility Renovation Procedure and Forms

The information contained in this ALERT is to provide clarity on established procedures. 

Alabama Administrative Code 560-X-22-.14(10) outlines the procedures and requirements for requesting an adjustment to the current asset value (CAV) of a nursing facility.

Please take note of the following:

   * Renovation for the purpose of the Chapter will be defined as real and fixed 

   property changes to a nursing facility.

   * The American Hospital Association publication, “Estimated Useful Lives of 

   Depreciable Hospital Assets,” Tables 2, 3, and 4 will be used to determine real 

   and fixed property affected by this rule. The Alabama Medicaid Agency has 

   also granted the use of Table 5.  

   * Renovation costs must exceed 5% of the CAV to qualify for a CAV 

   adjustment.

   * Prior to beginning renovations, facilities must request approval. Use the 

   Proposed Nursing Facility Renovation Project Form to request a Certificate of 

   Approval.

   * Renovation projects will be issued a Certificate of Approval or a Notice of 

   Denial.

   * Upon approval and completion of a renovation project, use the Completed Nursing Facility Renovation Project Form to request a CAV adjustment.

   * Forms can be emailed to ProviderAudit@medicaid.alabama.gov  or mailed to:

Alabama Medicaid Agency
Attention: Director of Provider Audit
P. O. Box 5624
Montgomery, AL 36103-5624

Refer to Administrative Code 560-X-22-.14(10) in its entirety for additional guidance. Questions regarding this ALERT should be emailed to ProviderAudit@medicaid.alabama.gov.



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