1.0Glossaryhttps://www.healthbenefitstimes.com/glossaryGlossaryhttps://www.healthbenefitstimes.com/glossary/author/adminglossary/Capital depreciation - Definition of Capital depreciationrich600338<blockquote class="wp-embedded-content" data-secret="8YW2sRsIw8"><a href="https://www.healthbenefitstimes.com/glossary/capital-depreciation/">Capital depreciation</a></blockquote><iframe sandbox="allow-scripts" security="restricted" src="https://www.healthbenefitstimes.com/glossary/capital-depreciation/embed/#?secret=8YW2sRsIw8" width="600" height="338" title="“Capital depreciation” — Glossary" data-secret="8YW2sRsIw8" frameborder="0" marginwidth="0" marginheight="0" scrolling="no" class="wp-embedded-content"></iframe><script>
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The decline in value of capital assets (assets of a permanent or fixed nature, goods and plant) over time with use. The rate and amount of depreciation is calculated by a variety of different methods (e.g., straight line, sum of the digits, declining balance) which often give quite different results. Reimbursement of health services usually includes an amount intended to be equivalent to the capital depreciation experienced by the provider of the services in conjunction with their provision.