Tennessee Capital Improvement Request Form Reminder

3/24/2025 - By Cade Crawford

For all Tennessee providers participating in the TennCare program, the submission deadline for the Capital Improvement Request Form is March 31, 2025. Any requests submitted and approved during this submission window will take effect during the July 1, 2025 rate period.

Capital Improvement Request Forms incentivize providers to continue performing capital improvements in years when mandatory statewide appraisals do not occur. The qualifying capital improvements made to the facility are added to the total facility base value portion of the FRV per diem calculation in the Medicaid reimbursement rate.

In order for the fixed asset additions to qualify, they must meet the following provisions:

Only fixed assets as defined in CMS Publication 15-1 section 104.2 (Building) and 104.3 (Building Equipment) may be submitted for Capital Improvement Update consideration.
Fixed assets must be capitalized in accordance with CMS Publication 15-1 section for inclusion on the form.
Capital improvement expenditures must exceed $1,000 per licensed bed. Licensed beds shall be those determined as of April 1 prior to submission of the form.
Capital improvement expenditures must exclude all grant or insurance proceeds associated with the purchasing of the asset.
Only capitalized items placed into service less than 12 months prior to the submission date of the form may be included.
This form may not contain capital expenditures that occurred during a statewide mandatory appraisal period or a voluntary provider reappraisal period.

Please note that capital improvements must be segregated between improvements impacting nursing facility service areas and non-nursing facility service areas, if applicable.

Providers must also submit their most recent depreciation schedule that includes all current items for the entire facility. This depreciation schedule should clearly identify which items are being requested for capital improvement update request purposes.

The Capital Improvement Update Request Form can be found under the downloads section at Myers and Stauffer’s website here: Tennessee Division of Health Care Finance and Administration Provider Portal | Myers & Stauffer.

If you have questions about this form or process, or any other questions concerning compliance, reimbursement, or operations for your skilled nursing facility, Saltmarsh’s team of experienced healthcare consultants can help. You can find all of the services our team can provide to your facility on our website - Healthcare Consulting | Saltmarsh CPA.