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UNOFFICIAL 1700.1-27 “G&A incentive adjustment” means an increase to a provider's basic PPS rates that is calculated as follows: (1) If the G&A per diem cost component of the provider's basic PPS rate is in the lowest quartile of its peer group, then the incentive payment shall be thirty-five per cent of the difference between the median G&A per diem cost for the peer group and the provider's G&A per diem cost component; (2) If the G&A per diem cost component of the provider's basic PPS rate is in the second lowest quartile of its peer group, then the incentive payment shall be twenty-five per cent of the difference between the median G&A per diem cost for the peer group and the provider's G&A per diem cost component; (3) Notwithstanding the foregoing, the G&A incentive adjustment shall not increase a provider's G&A cost component above the G&A component ceiling for the applicable acuity level in the provider's peer group. “G&A small facility adjustment” means an adjustment to small F/S NF’s basic PPS rates. To qualify for this adjustment, the F/S NF must: (1) Have fifty beds or less; and (2) Have a base year facility specific G&A cost per day in excess of their facility specific G&A cost component ceiling. To calculate the adjustment, the G&A cost component of the provider’s basic PPS rate calculation is recomputed as follows: (1) A cost differential in the average base year G&A cost per day, inflated to the PPS rate year, is computed between: (A) F/S NFs with fifty beds or less, and (B) F/S NFs with more than fifty beds but less than one hundred twenty-five. (2) The provider’s G&A cost component ceiling is increased by the computed cost differential described above.