California Court of Appeal February 18, 2004, C043540 (Redding Medical Center v. Bonta')

Opinion

DAVIS, J.—

Under the Medi-Cal health care program, a health care provider can be reimbursed annually for depreciation on buildings and equipment that are used to provide services to Medi-Cal patients. Under applicable regulations, the depreciation is based on the historical cost of the asset, which is generally the provider’s cost of acquiring and significantly improving it.