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(4) the department will allow an increase in the capital component under (1) or (3) of this subsection of the prospective payment rate for new assets that the small facility places in service after its base year as set out in 7 AAC 150.160(h), if

(A) the assets that are placed in service by the small facility have a value of at least $5,000,000;

(B) the small facility obtains one or more certificates of need for the assets that will be placed in service; and

(C) no later than 60 days before the effective date of the increase in the prospective payment rate for the small facility, the small facility provides to the department a detailed capital budget in accordance with 7 AAC 150.130(b) that reflects the allowance for the new assets that have been placed in service. (h) Notwithstanding (g) of this section, the prospective per-day payment rate established for a small facility may not exceed the charges made by the small facility. The charges will be compared in the aggregate. (i) If, after execution of a rate agreement made under (d) of this section, federal or state law mandates a change to a prospective payment rate, the department will consider recommendations made by the small facility before amending the prospective payment rate for the small facility. (j) If a small facility elects rate setting under this section, the reporting requirements of 7 AAC 150.130 and 7 AAC 150.140 that are applicable to the small facility during the rate agreement period under (d) of this section are modified as follows:

(1) the small facility shall submit the Medicare cost report and forms YET-1, T-2, SS-1A, SS-1B, and SS-1C of the required financial reporting forms from the Medicaid Hospital and Long-Term Care Facility Reporting Manual, adopted by reference in 7 AAC 160.900;

(2) except if the small facility requests a prospective payment rate adjustment for new assets under (g)(4) of this section, the small facility is not required to submit the budget report;

(3) in place of the audited financial statement, the small facility may submit a review of the small facility’s financial statements; the department will accept the review that is submitted if the review

(A) was conducted by an independent certified public accountant; and

(B) includes the balance sheet and related statements of income, retained earnings, and cash flows in accordance with the Statement on Standards for Accounting and Review Services No. 7 (1992) issued by the American Institute of Certified Public Accountants. (k) If a small facility elects rate setting under this section,

(1) except as otherwise specifically provided in (2) of this subsection, the exceptional relief process set out in 7 AAC 150.240 is the sole administrative review and appeals process