# ASC 280-954: Segment Reporting — Health Care Entities

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/280/954/)

Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective.

Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure.

Source downloaded (UTC): 2026-09-09T23:23:37.140Z to 2026-09-09T23:23:41.372Z

Record version: sha256:d9cc715f1d3b022f84dfcbad49935812835856569d23eb39aef23ab4134d15d1

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


## ASC 280-954: Segment Reporting — Health Care Entities

### Machine-generated study aids

```json
{
  "summary": "This industry subtopic applies the general segment reporting rules to investor-owned health care entities. Its single substantive rule is that, for purposes of the major-customer disclosures in paragraph 280-10-50-42, an insurer that merely pays for a patient's care is not the health care facility's \"customer.\" The customer is identified by who decides which services to purchase and from which facility.",
  "key_points": [
    "The guidance applies only to investor-owned health care entities (280-954-15-2), following the scope of Section 954-10-15 (280-954-15-1).",
    "In disclosing information about major customers under paragraph 280-10-50-42, an insuring entity shall not be considered the customer of a health care facility (280-954-45-1).",
    "Acting as a paying agent for the patient does not make the insurer the customer, because the insurer does not decide which services to purchase or from which facility (280-954-45-1).",
    "The two determinative factors for identifying the customer are who selects the services and who selects the provider (280-954-45-1)."
  ],
  "categories": [
    "Presentation",
    "Disclosure",
    "Industry-specific"
  ],
  "audience_level": "intermediate",
  "student_note": "Exam trap: a hospital with 40% of revenue collected from one insurer or Medicare-type payor does not thereby have a 10%-or-more \"major customer\" to disclose—patients, not payors, are the customers. Note also this subtopic is limited to investor-owned health care entities.",
  "related_topics": [
    "280-10",
    "954-10",
    "954-605",
    "275"
  ],
  "key_concepts": [
    "segment reporting",
    "major customer disclosure",
    "investor-owned health care entity",
    "insuring entity as paying agent",
    "identification of the customer",
    "concentration of revenue"
  ]
}
```

Source downloaded (UTC): 2026-09-09T23:23:37.140Z to 2026-09-09T23:23:37.140Z

Record version: sha256:a10d8759d344b0e3982898f2465fb4a2e82f01de86f1696cf48e338ba6216683

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


## ASC 280-954-05: 05 Overview and Background

[Read section](https://asc.understandingaccounting.org/asc/280/954/#05-overview-and-background)

SEC content: no

##### [280-954-05-1](https://asc.understandingaccounting.org/asc/280/954/#280-954-05-1)

Pending content: no

Source downloaded (UTC): 2026-09-09T23:23:37.140Z to 2026-09-09T23:23:37.140Z

Record version: sha256:e6a22277d4ef140f757a249828169bf6f560eacd282eb3ffadbd16db6decf433

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


This Subtopic provides guidance on segment reporting for investor-owned health care entities.

Source downloaded (UTC): 2026-09-09T23:23:39.250Z to 2026-09-09T23:23:39.250Z

Record version: sha256:90fb3bd3bd4cbaead637cc80040049412c966ea8b342eb87325ae0dcc2e08810

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


## ASC 280-954-15: 15 Scope and Scope Exceptions

[Read section](https://asc.understandingaccounting.org/asc/280/954/#15-scope-and-scope-exceptions)

SEC content: no

#### Overall Guidance

##### [280-954-15-1](https://asc.understandingaccounting.org/asc/280/954/#280-954-15-1)

Pending content: no

Source downloaded (UTC): 2026-09-09T23:23:39.250Z to 2026-09-09T23:23:39.250Z

Record version: sha256:12d6cf68b615772a24bdcac0840d84b157e7fe7307e1b288d95cefd002a103fd

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


The Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 954-10-15, with specific entity qualifications noted below.

#### Entities

##### [280-954-15-2](https://asc.understandingaccounting.org/asc/280/954/#280-954-15-2)

Pending content: no

Source downloaded (UTC): 2026-09-09T23:23:39.250Z to 2026-09-09T23:23:39.250Z

Record version: sha256:e9d44ea81553b1690197fef7e977167e9e3ac830d010252277322ebbb8c3de7a

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


The guidance in this Subtopic applies only to investor-owned health care entities.

Source downloaded (UTC): 2026-09-09T23:23:41.372Z to 2026-09-09T23:23:41.372Z

Record version: sha256:9312edeabd20c6797aa173b07ede726782cdea0f21215f506a85ad7292e20655

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


## ASC 280-954-45: 45 Other Presentation Matters

[Read section](https://asc.understandingaccounting.org/asc/280/954/#45-other-presentation-matters)

SEC content: no

##### [280-954-45-1](https://asc.understandingaccounting.org/asc/280/954/#280-954-45-1)

Pending content: no

Source downloaded (UTC): 2026-09-09T23:23:41.372Z to 2026-09-09T23:23:41.372Z

Record version: sha256:7c1471d0c2efe7a69ce315499aaa7a09bb52cff7b56a53941ac02ea5f0feddc7

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


When providing information about major customers pursuant to paragraph [280-10-50-42](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-42), an insuring entity shall not be considered the customer of a health care facility. The fact that an insuring entity is a paying agent for the patient does not make the insuring entity the customer of the health care facility because the insuring entity does not decide which services to purchase and from which health care facility to purchase the services. The latter two factors are important in determining the customer.