{"data":{"id":"us-va/12vac30-70-70","jurisdiction":"us-va","citation":"12VAC30-70-70","heading":"Revaluation of assets","body":"A. Effective  July 1, 2008, the valuation of an asset of a hospital or long-term care facility which has undergone a change of ownership on or after July 18, 1984, shall be the lesser of the seller's allowable  depreciated historical cost  (net book value) as determined for Medicaid reimbursement of the owner of record as of July 18, 1984, or the acquisition cost to the new owner.\n\nB. In the case of an asset not in existence as of July 18, 1984, the valuation of an asset of a hospital or long-term care facility shall be the lesser of the seller's allowable depreciated historical cost (net book value) as determined for Medicaid reimbursement of the first owner of record, or the acquisition cost to the new owner.\n\nC. In establishing appropriate allowance for depreciation, interest on capital indebtedness, and return on equity (if applicable prior to July 1, 1986) the base to be used for such computations shall be limited to subsection A or B  of this section.\n\nD. Costs (including legal fees, accounting and administrative costs, travel costs, and feasibility studies) attributable to the negotiation or settlement of the sale or purchase of any capital asset (by acquisition or merger) shall be reimbursable only to the extent that they have not been previously reimbursed by Medicaid.\n\nE. Rental charges in sale and leaseback agreements shall be restricted to the depreciation, mortgage interest and (if applicable prior to July 1, 1986) return on equity based on cost of ownership as determined in accordance with subsections A and B of this section.","path":["Title 12. Health","Agency 30. Department of Medical Assistance Services","Chapter 70. Methods and Standards for Establishing Payment Rates; In-Patient Hospital Care","Part I. Per Diem Methodology"],"source_url":"https://law.lis.virginia.gov/admincode/title12/agency30/chapter70/section70/","current_through":"2026 Regular Session (effective July 1, 2026)","vintage":"","retrieved_at":"2026-09-14T04:50:58Z","sha256":"5e0d4969f3603f4ce535e2940b727a18ff7b1796c3b30861648e20efd92d5beb","source_id":"us-va-vac","stale":false,"prev":"us-va/12vac30-70-60","next":"us-va/12vac30-70-80"},"notice":"GroundRules: Original legal text. Not legal advice."}