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section, the department will determine a rural health clinic’s payment rate or a federally qualified health center’s payment rate based on the health clinic’s reasonable costs. Reasonable costs must be determined by using the same methodology used under 42 U.S.C. 1395l(a)(3) and 42 C.F.R. 413.1 — 413.157. Costs must be related to furnishing medically necessary and appropriate services to Medicaid-eligible patients in accordance with 7 AAC 140.215. Costs may not include the cost of providing prescription drugs. The department will consider only costs that are related to providing Medicaid-eligible services to Medicaid-eligible patients, and will exclude other costs. A health clinic may receive payment only for services provided to a patient of the clinic by an employee or a contract worker of the clinic. The department’s payment for services provided by the health clinic will be paid to the health clinic. (b) Unless the department and a health clinic make an agreement for the department to pay the clinic at the rates calculated under (g) of this section, the department will pay the clinic in accordance with 42 U.S.C. 1396a(bb)(1) — (5), adopted by reference in 7 AAC 160.900. For state fiscal year 2018, the department will not adjust for inflation the payment rate under this subsection. (c) If, consistent with the alternative payment methodology provisions of 42 U.S.C. 1396a(bb)(6), adopted by reference in 7 AAC 160.900, the department and a health clinic make an agreement for the department to pay the clinic at the rate calculated under this subsection, the department will calculate a prospective payment rate as follows:

(1) base rates will be calculated prospectively,

(A) in an amount calculated on a per-visit basis and equal to 100 percent of the inflated average of the allowable costs