# ASC 405-954-05: Liabilities — Health Care Entities — 05 Overview and Background

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/405/954/#05-overview-and-background)

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## ASC 405-954-05: 05 Overview and Background

[Read section](https://asc.understandingaccounting.org/asc/405/954/#05-overview-and-background)

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##### [405-954-05-1](https://asc.understandingaccounting.org/asc/405/954/#405-954-05-1)

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This Subtopic provides guidance on liabilities for health care entities within the scope of this Topic.

##### [405-954-05-2](https://asc.understandingaccounting.org/asc/405/954/#405-954-05-2)

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Contracts between a health care provider and a payor based on anything other than full charges require the provider to accept some financial risk. The nature and degree of risk for the provider varies depending on the contract terms (for example, the definition of the unit of service or the basis for payment).