A bill to amend title XVIII of the Social Security Act to prohibit the revaluation of facilities and equipment for depreciation and interest purposes under the medicare program because of the change of ownership of the facilities or equipment, and for other purposes.

[AI summary unavailable — showing source text] Amends title XVIII (Medicare) of the Social Security Act to provide that with respect to the establishment of an appropriate allowance for depreciation and for interest on capital indebtedness with respect to a hospital's asset which has undergone a change of ownership: (1) the valuation of the asset as a result of the change shall not exceed the net book value of the asset; (2) to the extent that the sum of the capital indebtedness and equity exceeds the net book value of the asset, capital indebtedness and equity capital shall not be recognized; and (3) only the amount (if any) by which the net book value of the asset exceeds the equity capital established with respect to the asset shall be recognized as capital indebtedness. Directs the Secretary of Health and Human Services, in the case of the disposition of depreciable assets for which depreciation has been taken and reimbursed as a reasonable cost under Medicare, to provide for an appropriate net depreciation adjustment in the reimbursement of the transferor so as to reflect any gain or loss upon such disposition relative to the net book value of the asset. Defines "net book value" to mean, with respect to an hospital asset t…