A distinct part SNF or NF must be financially integrated with the institution based on sharing what?

A distinct part Skilled Nursing Facility (SNF) or Nursing Facility (NF) must be financially integrated with the institution primarily through the sharing of income and expenses. This financial integration is crucial because it demonstrates that the SNF or NF is not operating as an independent entity but as part of a larger institution, such as a hospital or health system. Sharing income and expenses helps establish a comprehensive financial framework where costs and revenues from the facility are accounted for in the larger context of the institution's overall financial operations.

When a SNF or NF shares income and expenses with the parent organization, it reinforces the notion that the facility is an integral component of the healthcare services provided by the institution and not merely a separate business venture. This alignment is important for regulatory compliance, funding, and reimbursement purposes, as the financial relationships can impact how care is delivered and the resources available for residents within the skilled nursing or nursing facility.

The other options, such as sharing employees, electrical power, or equipment and supplies, while contributing to operational efficiency and cooperation, do not specifically address the financial integration required for regulatory purposes in distinguishing parts of healthcare facilities.