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or confirmations; (5) “base year” means the facility’s fiscal year ending 12 months before the fiscal year for which prospective payment rates are to be re-based; (6) “budget” and “budgeting” mean the financial data for, and the process of, developing a capital budget for annual submission to the department, by a facility that has received a certificate of need for the facility’s prospective fiscal year or for a facility that has a rate established under 7 AAC 150.160(i)(3)(B); (7) “capital” means capital-related costs as determined in accordance with 42 C.F.R. 413.130 — 413.153, governing the Medicare cost report; (8) “certificate” or “certificate of need” means a certificate of need required by and approved under AS 18.07 and 7 AAC 07; (9) “charges” means amounts that patients are billed for health care services provided by a facility; (10) “charity care” means health care services that

(A) a facility does not expect to result in cash payments; and

(B) result from a facility’s policy to provide health care services free of charge to an individual who meets certain financial criteria; (11) “clinical laboratory service” means a biological, microbiological, serological, chemical, immunohematological, hematological, biophysical, cytological, pathological, or other examination of materials derived from the human body, for the purpose of diagnosis, prevention, or treatment of a disease, or assessment of a medical condition of a human being; (12) “CMC DSH” means a children’s medical care DSH; (13) “commissioner” means the commissioner of health or the commissioner’s designee; (14) “cost center” means a breakout of costs on the Medicare cost report related to a particular type of service or administrative function at the facility; (15) “department” means the Department of Health; (16) “depreciation” means the systematic distribution of the cost or other base of a tangible asset over the estimated useful life of the asset; (17) “deputy commissioner” means a deputy commissioner of the department or the deputy commissioner’s designee; (18) “DET DSH” means a designated evaluation and treatment DSH; (19) “Diagnosis Related Groups” or “DRG” means a patient classification system that standardizes prospective payments to hospitals by grouping services that consume similar hospital resources;