OAR 411-070-0385: Depreciation Lives

(1) The provider must use the "Estimated Useful Lives of Depreciable Hospital Assets" Revised 2004 guidelines for asset lives when computing depreciation. (2) For assets not covered by the guidelines and with costs of more than $1,000 per unit, or in aggregate, the lives established by the provider are subject to approval by the Department. (3) Depreciation and amortization schedules must be maintained. (4) Depreciation expense is not allowed on land. (5) Depreciation and amortization must be calculated on a straight line basis and prorated over the estimated useful life of the asset. [Publications: Publications referenced are available from the agency.]