Base Utilization Rate

     Each program is assigned to one of the three program types listed below based upon consideration of the program description and operational factors.  A Base Utilization Rate corresponds to each of the program types.  Unless waived pursuant to paragraph (b), a program's utilization rate may not be lower than the applicable Base Utilization Rate.

Average Utilization Rate

     The Average Utilization Rate is based on the average actual utilization of the program for the prior three years. In determining the prior years' average, the PADs may exclude time periods when program utilization was low due to initial program start-up.

     In cases where program changes are approved by the PADs and/or in cases where occupancy is expected to vary materially from the three year average, the PADs may select an estimated utilization rate different than the Average Utilization Rate for comparison to the Base Utilization Rate.

(b)     In a decision on an application for a rate adjustment, the Base Utilization Rates defined above may be waived when appropriate only be written notice to the Division of Rate Setting from the Commissioner of the PAD who contracts with the provider as well as representatives of the other PADs who are responsible for a portion of the per diem rate paid to the provider. This shall be on a form prescribed by the Division of Rate Setting.  The Division of Rate Setting may advise the respective Commissioners and PADS, but shall have to direct role in the procurement of such a waiver.  Waivers granted under this section shall be purely discretionary and at the initiative of the PADS.