(A) The medicaid director shall adopt rules in accordance with Chapter 119 of the Revised Code for the purpose of administering sections 5168.01 to 5168.14 of the Revised Code, including rules that do all of the following:

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(1) Define as a “disproportionate share hospital” any hospital included under the “Social Security Act,” section 1923(b), 42 U.S.C. §§ 1396r-4(b), and any other hospital the director determines appropriate;

(2) Prescribe the form for submission of cost reports under section 5168.05 of the Revised Code;

(3) Establish, in accordance with division (A) of section 5168.06 of the Revised Code, the assessment rate or rates to be applied to hospitals under that section;

(4) Establish schedules for hospitals to pay installments on their assessments under section 5168.06 of the Revised Code and for governmental hospitals to pay installments on their intergovernmental transfers under section 5168.07 of the Revised Code;

(5) Establish procedures to notify hospitals of adjustments made under division (B)(2)(b) of section 5168.06 of the Revised Code in the amount of installments on their assessment;

(6) Establish procedures to notify hospitals of adjustments made under division (D) of section 5168.08 of the Revised Code in the total amount of their assessment and to adjust for the remainder of the program year the amount of the installments on the assessments;

(7) Establish, in accordance with section 5168.09 of the Revised Code, the methodology for paying hospitals under that section.

The director shall consult with hospitals when adopting the rules required by divisions (A)(4) and (5) of this section in order to minimize hospitals’ cash flow difficulties.

(B) Rules adopted under this section may provide that “total facility costs” excludes costs associated with any of the following:

(1) Medicaid recipients;

(2) Recipients of the program for children and youth with special health care needs established under section 3701.023 of the Revised Code;

(3) Medicare beneficiaries;

(4) Recipients of Title V of the “Social Security Act,” 42 U.S.C. § 701 et seq.;

(5) Any other category of costs deemed appropriate by the director in accordance with Title XIX of the “Social Security Act,” 42 U.S.C. § 1396 et seq., and the rules adopted under that title.