Mercy Hospital v. Commonwealth

McGINLEY, Judge.

This is an appeal by the Mercy Hospital of Johnstown (Mercy) from the decision of the Office of Hearings and Appeals (OHA) denying Mercy’s appeal and determining that Mercy’s allowable cost basis in the building must be limited to Central Transportation, Inc.’s (CT) basis therein at the time of sale.

CT was the owner of a building (Building) in Johnstown, Pennsylvania, which it leased to the Cambria County Nursing Care Center (County Nursing) from March 6, 1975, until the end of 1984. Mercy acquired the Building to operate its own nursing facility on or about November 28, 1984.…