# ASC 460-954: Guarantees — Health Care Entities

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/460/954/)

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## ASC 460-954: Guarantees — Health Care Entities

### Machine-generated study aids

```json
{
  "summary": "This subtopic applies the general guarantee accounting model in Topic 460 to health care entities, following the scope of Subtopic 954-10. Its only substantive content points to Topic 460's guidance on minimum revenue guarantees, illustrated by a health care entity's guarantee of minimum revenue to a recruited physician.",
  "key_points": [
    "This Subtopic provides guidance on accounting for guarantees for health care entities within the scope of Topic 460 (460-954-05-1).",
    "Scope and scope exceptions are the same as those in the Overall Subtopic at Section 954-10-15 (460-954-15-1).",
    "Guidance on minimum revenue guarantees is found in Topic 460 generally (460-954-55-1).",
    "Paragraph 460-10-55-11 illustrates a minimum revenue guarantee granted by a not-for-profit, business-oriented health care entity to a nonemployee physician recruited to move to the entity's geographic area to establish a practice (460-954-55-1)."
  ],
  "categories": [
    "Contingencies and guarantees",
    "Industry-specific",
    "Recognition",
    "Not-for-profit"
  ],
  "audience_level": "intermediate",
  "student_note": "Physician recruitment income guarantees are a classic health care industry exam fact pattern: they are guarantees under Topic 460, so the entity recognizes a liability at inception at fair value, not merely a contingency accrued when payment becomes probable. The common error is treating the recruitment agreement as a compensation or contingency issue rather than a guarantee.",
  "related_topics": [
    "460-10",
    "954-10",
    "954-450",
    "450-20",
    "954-440"
  ],
  "key_concepts": [
    "guarantee",
    "minimum revenue guarantee",
    "physician recruitment agreement",
    "health care entity",
    "not-for-profit business-oriented entity",
    "guarantor liability",
    "scope"
  ]
}
```

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## ASC 460-954-05: 05 Overview and Background

[Read section](https://asc.understandingaccounting.org/asc/460/954/#05-overview-and-background)

SEC content: no

##### [460-954-05-1](https://asc.understandingaccounting.org/asc/460/954/#460-954-05-1)

Pending content: no

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

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## ASC 460-954-15: 15 Scope and Scope Exceptions

[Read section](https://asc.understandingaccounting.org/asc/460/954/#15-scope-and-scope-exceptions)

SEC content: no

#### Overall Guidance

##### [460-954-15-1](https://asc.understandingaccounting.org/asc/460/954/#460-954-15-1)

Pending content: no

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This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 954-10-15.

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## ASC 460-954-55: 55 Implementation Guidance and Illustrations

[Read section](https://asc.understandingaccounting.org/asc/460/954/#55-implementation-guidance-and-illustrations)

SEC content: no

#### Implementation Guidance

##### [460-954-55-1](https://asc.understandingaccounting.org/asc/460/954/#460-954-55-1)

Pending content: no

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See Topic 460 for guidance on minimum revenue guarantees, and see paragraph [460-10-55-11](https://asc.understandingaccounting.org/asc/460/10/#460-10-55-11) for an example of a minimum revenue guarantee granted to a nonemployee physician by a not-for-profit business-oriented health care entity that has recruited a physician to move to the entity's geographical area to establish a practice.