{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/810/954/#05-overview-and-background","source":"FASB Accounting Standards Codification, Basic View","usage":"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.","topic":"810","topic_title":"Consolidation","subtopic":"810-954","subtopic_title":"Health Care Entities","section":{"number":"05","label":"05 Overview and Background","anchor":"05-overview-and-background","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"810-954-05-1","para":"05-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">This Subtopic addresses consolidation accounting for health care entities within the scope of this Topic.</div></div>","snippet":"This Subtopic addresses consolidation accounting for health care entities within the scope of this Topic.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f361b4234fe3b26d4a38f9865a291706fc5fae4c3186e958d7e2a6851d8076b9","downloaded_from":"2026-09-10T01:32:44.347Z","last_downloaded_at":"2026-09-10T01:32:44.347Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477699","source_sha256":"41063bed2e395ca1fdb925dc2ea9809c652843184e3578b38764caf1e8232bfa"}},{"citation":"810-954-05-2","para":"05-2","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_2AA4C8EE-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">An integrated health care system typically consists of multiple related entities, operating both for-profit entities and not-for-profit entities (NFPs). </span></span><span class=\"sfragment\" id=\"sfr_2AA4CA65-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">A not-for-profit parent entity may be the sole corporate member or, through other means, it may control other entities such as a not-for-profit hospital, a not-for-profit medical foundation that contracts with a for-profit physician group, or other not-for-profit providers such as a long-term care center, a substance abuse center, a surgery center, or an outpatient clinic. </span></span><span class=\"sfragment\" id=\"sfr_2AA4CB73-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The system also may own stock in various for-profit ventures such as <a href=\"/glossary/h/#health-maintenance-organization\" class=\"term\" title=\"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.\"><span>health maintenance organizations</span></a> or insurance entities that may or may not provide patient care. Fundraising typically is accomplished through a separate foundation. </span></span><span class=\"sfragment\" id=\"sfr_2AA4CC5C-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Foundations, auxiliaries, guilds, and similar entities frequently assist and, in many instances, are related to the health care entity. </span></span></div></div>","snippet":"An integrated health care system typically consists of multiple related entities, operating both for-profit entities and not-for-profit entities (NFPs). A not-for-profit parent entity may be the sole corporate member or,…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6ac953e25104f74c29b818d3a0733acd2e8786c0a1b3587ff2f888be022f5522","downloaded_from":"2026-09-10T01:32:44.347Z","last_downloaded_at":"2026-09-10T01:32:44.347Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477699","source_sha256":"41063bed2e395ca1fdb925dc2ea9809c652843184e3578b38764caf1e8232bfa"}},{"citation":"810-954-05-3","para":"05-3","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_2AA4CD3A-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The rights and powers of the controlling entity may vary depending on the legal structure of the controlled entity and the nature of <a href=\"/glossary/c/#control\" class=\"term\" title=\"The direct or indirect ability to determine the direction of management and policies through ownership, contract, or otherwise.\"><span>control</span></a>. </span></span><span class=\"sfragment\" id=\"sfr_2AA4CE18-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The majority owner of a for-profit entity's voting stock or the sole corporate member of an NFP may not only have the ability to determine the direction of the controlled entity but also have the proportionate right to (or the responsibility for) operating results and a residual interest in the net assets upon dissolution. </span></span><span class=\"sfragment\" id=\"sfr_2AA4CEDF-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">However, in other situations, the rights of the controlling party may be more limited. </span></span><span class=\"sfragment\" id=\"sfr_2AA4CFA0-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">For example, in the case of a sole general partner in a limited partnership, the limited partners—and not the general partner—may be entitled to the net assets upon dissolution. </span></span></div></div>","snippet":"The rights and powers of the controlling entity may vary depending on the legal structure of the controlled entity and the nature of control. The majority owner of a for-profit entity's voting stock or the sole corporate…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ec0a5075366c154f3a34669fb5ef2a7f959dc233192e917210ea1d3628355dde","downloaded_from":"2026-09-10T01:32:44.347Z","last_downloaded_at":"2026-09-10T01:32:44.347Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477699","source_sha256":"41063bed2e395ca1fdb925dc2ea9809c652843184e3578b38764caf1e8232bfa"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:031bd8faad872c52f51c51f0a1ac122465762174365ff1a3824bc7c76c216128","downloaded_from":"2026-09-10T01:32:44.347Z","last_downloaded_at":"2026-09-10T01:32:44.347Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477699","source_sha256":"41063bed2e395ca1fdb925dc2ea9809c652843184e3578b38764caf1e8232bfa"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d2689c5bc56d87fa93eaf823ede03c98f3e3ade8d121c216acf22ac84e080c78","downloaded_from":"2026-09-10T01:32:44.347Z","last_downloaded_at":"2026-09-10T01:32:44.347Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477699","source_sha256":"41063bed2e395ca1fdb925dc2ea9809c652843184e3578b38764caf1e8232bfa"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d2689c5bc56d87fa93eaf823ede03c98f3e3ade8d121c216acf22ac84e080c78","downloaded_from":"2026-09-10T01:32:44.347Z","last_downloaded_at":"2026-09-10T01:32:44.347Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477699","source_sha256":"41063bed2e395ca1fdb925dc2ea9809c652843184e3578b38764caf1e8232bfa"}}