North Dakota Code § 50-06-14.1

Limitation on state reimbursement for rental expenses of long -term care
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facilities.
The department shall limit the reimbursement for rental expense paid by a provider of 
services when a provider sells its skilled nursing facility, intermediate care facility, basic care 
facility, or other facility furnishing care to its residents, when a care rate is based, in part, upon 
property costs unique to that facility, to a third party who leases the facility back to the provider. 
The department's reimbursement for rental expense may not exceed the lesser of the rental 
expense paid by the provider or the cost of ownership of the facility. The cost of ownership 
includes depreciation, interest, real estate taxes, and other expenses properly related to the 
facility. The department shall apply this limit to rates set for each facility's first fiscal year 
beginning on or after July 1, 1985, but shall consider, in setting such rates, all sales occurring on 
or after July 18, 1984.

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