# ASC 310-954-05: Receivables — Health Care Entities — 05 Overview and Background Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/310/954/#05-overview-and-background) 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): 2026-09-09T23:31:31.153Z to 2026-09-09T23:31:31.153Z Record version: sha256:bde92ebb7784d22ac8bfa60f970bd96eb36c21d3c5e014256551d5c488c5c2eb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-954-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/310/954/#05-overview-and-background) SEC content: no ##### [310-954-05-1](https://asc.understandingaccounting.org/asc/310/954/#310-954-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:31:31.153Z to 2026-09-09T23:31:31.153Z Record version: sha256:383ee1e689c2a4458afe19a10c1e15f7b208efd100567fc8b8b6d470eb8e8c0e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic provides guidance on receivables for health care entities within the scope of this Topic. ##### [310-954-05-2](https://asc.understandingaccounting.org/asc/310/954/#310-954-05-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:31:31.153Z to 2026-09-09T23:31:31.153Z Record version: sha256:b18c37fd0d940e11fa5e09acf4812e860569fcf811dc776611bf41242089c782 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Amounts due from third-party payors for health care services are usually less than the provider's full established rates for those services. The receivable amounts may be determined by any of the following: 1. a Contractual agreement with others (such as Blue Cross plans, Medicare, Medicaid, or [health maintenance organizations](https://asc.understandingaccounting.org/glossary/h/#health-maintenance-organization "A generic group of medical care entities organized to provide defined health care services to members in return for fixed, periodic premiums (usually paid monthly) that are paid in advance.")) 2. b Legislation or regulation (such as workers' compensation or no-fault insurance) 3. c Provider policy or practice (such as courtesy discounts to medical staff members and employees or other administrative adjustments). #### Third-Party Settlements ##### [310-954-05-3](https://asc.understandingaccounting.org/asc/310/954/#310-954-05-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:31:31.153Z to 2026-09-09T23:31:31.153Z Record version: sha256:6eae2a108add11e2f2abac8ad2a0d95323c63d90ffb92e8614191aad6f84f545 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Some third-party payors retrospectively determine final amounts reimbursable for services rendered to their beneficiaries based on allowable costs. These payors reimburse the health care entity on the basis of interim payment rates until the retrospective determination of allowable costs can be made. In most instances, the accumulation and allocation of allowable costs and other factors result in final settlements different from the interim payment rates. Final settlements are determined after the close of the fiscal periods to which they apply and may affect materially the health care entity's financial position and results of operations. #### Stop-Loss Insurance Receivables ##### [310-954-05-4](https://asc.understandingaccounting.org/asc/310/954/#310-954-05-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:31:31.153Z to 2026-09-09T23:31:31.153Z Record version: sha256:2bc5b0390b1c6f33362a00aba0a6003643d13504c3b9b7c17f39bd80ce75a1e2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Some health care entities, for example, [providers of prepaid health care services](https://asc.understandingaccounting.org/glossary/p/#prepaid-health-care-services-providers "Entities that provide or arrange for the delivery of health care services in accordance with the terms and provisions of a prepaid health care plan. Providers assume the financial risk of the cost of delivering health care services in excess of preestablished fixed premiums. However, some or all of the financial risk may be contractually transferred to other providers (affiliated entities) or by purchasing stop-loss insurance. Other providers of prepaid health care services may include comprehensive medical plans, physicians groups (for example, independent practice associations), and hospitals."), contract to provide comprehensive health care services for a fixed period in return for fixed periodic premiums. Many of those entities may transfer a portion of their financial risks under the contract to another entity by purchasing [stop-loss insurance](https://asc.understandingaccounting.org/glossary/s/#stop-loss-insurance "A contract in which an entity agrees to indemnify providers for certain health care costs incurred by members."). Receivables of those entities may include uncollected premiums and amounts recoverable from stop-loss insurers, reduced by appropriate valuation allowances.