C.F.R. » Title 42 » CHAPTER IV—CENTERS FOR MEDICARE & MEDICAID SERVICES, DEPARTMENT OF HEALTH AND HUMAN SERVICES › SUBCHAPTER B—MEDICARE PROGRAM › PART 413—PRINCIPLES OF REASONABLE COST REIMBURSEMENT; PAYMENT FOR END-STAGE RENAL DISEASE SERVICES; PROSPECTIVELY DETERMINED PAYMENT RATES FOR SKILLED NURSING FACILITIES; PAYMENT FOR ACUTE KIDNEY INJURY DIALYSIS › Subpart G—Capital-Related Costs

42 C.F.R. § 413.149

Depreciation: Allowance for depreciation on assets financed with Federal or public funds

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(a) Principle. Depreciation is allowed on assets financed with Hill-Burton or other Federal or public funds.

(b) Application. Like other assets (including other donated depreciable assets), assets financed with Hill-Burton or other Federal or public funds become a part of the provider institution's plant and equipment to be used in furnishing services. It is the function of payment of depreciation to provide funds that make it possible to maintain the assets and preserve the capital employed in the production of services. Therefore, irrespective of the source of financing of an asset, if it is used in the providing of services for beneficiaries of the program, payment for depreciation of the asset is, in fact, a cost of the production of those services. Moreover, recognition of this cost is necessary to maintain productive capacity for the future. An incentive for funding of depreciation is provided in these principles by the provision that investment income on funded depreciation is not treated as a reduction of allowable interest expense under § 413.153(a).

Notes of Decisions
Cited in 2 cases (1 in the last 5 years), 1990–2024 · leading case: Red Lake Band of Chippewa Indians v. United States Dep't of Health & Human Servs., 718 F. Supp. 3d 50 (D.D.C. 2024).
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Red Lake Band of Chippewa Indians v. United States Dep't of Health & Human Servs., 718 F. Supp. 3d 50 (D.D.C. 2024). “3198 , 3200 (2006) (concerning the “total estimated costs” which the United States Postal Service may fund through postal rates and fees); 42 C.F.R. § 413.149 (b) (permitting Medicare service providers to depreciate assets “irrespective of the source of the financing of an…”
Hosp. de Area de Carolina v. Sullivan, 735 F. Supp. 432 (D.D.C. 1990). “On March 13, 1989, after a four day hearing, the PRRB issued a unanimous decision reversing the Intermediary’s determination, and ruling that the Hospital, as provider, was entitled to reimbursement of the disputed ownership costs under the depreciation provisions of 42 C.F.R. §…”
Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.