Costs not related to patient care are costs which are not appropriate or necessary and proper in developing and maintaining the operation of patient care facilities and activities. Costs which are not necessary include costs which usually are not common or accepted occurrences in the field of the provider’s activity.
Such costs are not allowable in computing reimbursable costs and include, for example:
Cost of meals sold to visitors;
Cost of drugs sold to other than patients;
Cost of operation of a gift shop;
Cost of alcoholic beverages furnished to employees or to others regardless of how or where furnished, such as cost of alcoholic beverages furnished at a provider picnic or furnished as a fringe benefit;
Cost of entertainment, including tickets to sporting and other entertainment events;
Cost of personal use of motor vehicles;
Cost of fines or penalties resulting from violations of Federal, State, or local laws;
Cost of educational expenses for spouses or other dependents of providers of services, their employees or contractors, if they are not active employees of the provider or contractor;
Cost of meals served to executives that exceed the cost of meals served to ordinary employees due to the use of separate executive dining facilities (capital and capital-related costs), duplicative or additional food service staff (chef, waiters/waitresses, etc.), upgraded or gourmet menus, etc.; and
Cost of travel incurred in connection with non-patient care related purposes.