NAC439A.295. Determining when capital expenditure is incurred by or on behalf of health facility.

     1. A capital expenditure is incurred by or on behalf of a health facility:

     (a) When a contract, enforceable under state law, is entered into by or on behalf of the health facility for the construction, acquisition, lease or financing of a capital asset;

     (b) When the governing board of the health facility takes formal action to commit money for a construction project undertaken by the health facility as its own contractor; or

     (c) In the case of donated property, on the date on which the gift is completed under applicable state law.

     2. An obligation for a capital expenditure which is contingent upon issuance of a letter of approval is not considered incurred until the letter of approval is issued.

     3. A capital expenditure is incurred by or on behalf of a health facility if the capital expenditure:

     (a) Is required for providing health services in or through the facility;

     (b) Is required for new construction; or

     (c) Will provide a direct benefit to the facility substantially related to the health services to be offered in or through the facility.

     (Added to NAC by Dep’t of Human Resources, eff. 9-4-84; A 3-6-86; 10-14-97)