Medicare Program--Limit on the Valuation of a Depreciable Asset Recognized as an Allowance for Depreciation and Interest on Capital Indebtedness After a Change of Ownership

OGC-98-27: Published: Feb 10, 1998. Publicly Released: Feb 10, 1998.


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Pursuant to a legislative requirement, GAO reviewed the Health Care Financing Administration's (HCFA) new rule on the Medicare Program. GAO noted that: (1) the rule would revise Medicare provider reimbursement regulations relative to allowable costs and set a limit on the valuation of a depreciable asset that may be recognized in establishing an appropriate allowance for depreciation and for interest on capital indebtedness after a change of ownership that occurs on or after December 1, 1997; and (2) HCFA complied with applicable requirements in promulgating the rule.

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