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from the prior full calendar year or imputed census based on the 1 number of licensed beds at ninety percent occupancy. 2 (c) For the rate year beginning July 1, 2016, all facilities must 3 be reimbursed using four hundred square feet. For the rate year 4 beginning July 1, 2017, allowable nursing facility square footage 5 must be determined using the total nursing facility square footage as 6 reported on the medicaid cost reports submitted to the department in 7 compliance with this chapter. The maximum allowable square feet per 8 bed may not exceed four hundred fifty. 9 (d) Each facility must be paid at eighty-three percent or greater 10 of the median nursing facility RSMeans construction index value per 11 square foot. The department may use updated RSMeans construction 12 index information when more recent square footage data becomes 13 available. The statewide value per square foot must be indexed based 14 on facility zip code by multiplying the statewide value per square 15 foot times the appropriate zip code based index. For the purpose of 16 implementing this section, the value per square foot effective July 17 1, 2016, must be set so that the weighted average fair rental value 18 rate is not less than ten dollars and eighty cents per patient day. 19 The capital component rate allocations calculated in accordance with 20 this section must be adjusted to the extent necessary to comply with 21 RCW 74.46.421. 22 (e) The average age is the actual facility age reduced for 23 significant renovations. Significant renovations are defined as those 24 renovations that exceed two thousand dollars per bed in a calendar 25 year as reported on the annual cost report submitted in accordance 26 with this chapter. For the rate beginning July 1, 2016, the 27 department shall use renovation data back to 1994 as submitted on 28 facility cost reports. Beginning July 1, 2016, facility ages must be 29 reduced in future years if the value of the renovation completed in 30 any year exceeds two thousand dollars times the number of licensed 31 beds. The cost of the renovation must be divided by the accumulated 32 depreciation per bed in the year of the renovation to determine the 33 equivalent number of new replacement beds. The new age for the 34 facility is a weighted average with the replacement bed equivalents 35 reflecting an age of zero and the existing licensed beds, minus the 36 new bed equivalents, reflecting their age in the year of the 37 renovation. At no time may the depreciated age be less than zero or 38 greater than forty-four years. 39 p. 1392 ESSB 5187.SL