Amends title XVIII (Medicare) of the Social Security Act to provide that in establishing an appropriate allowance for depreciation and for…

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

Amends title XVIII (Medicare) of the Social Security Act to provide that in establishing 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 shall not be recognized; and (3) only the amount (if any) by which the net book value of the asset exceeds the equity established with respect to the asset shall be recognized as capital indebtedness. Defines "net book value" to mean, with respect to a hospital asset the ownership of which has changed, the valuation of the asset established for Medicare (less accumulated depreciation) on the date before the date of the ownership change.