# ASC 810-954-05: Consolidation — Health Care Entities — 05 Overview and Background

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/810/954/#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): 2026-09-10T01:32:44.347Z to 2026-09-10T01:32:44.347Z

Record version: sha256:d2689c5bc56d87fa93eaf823ede03c98f3e3ade8d121c216acf22ac84e080c78

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


## ASC 810-954-05: 05 Overview and Background

[Read section](https://asc.understandingaccounting.org/asc/810/954/#05-overview-and-background)

SEC content: no

##### [810-954-05-1](https://asc.understandingaccounting.org/asc/810/954/#810-954-05-1)

Pending content: no

Source downloaded (UTC): 2026-09-10T01:32:44.347Z to 2026-09-10T01:32:44.347Z

Record version: sha256:f361b4234fe3b26d4a38f9865a291706fc5fae4c3186e958d7e2a6851d8076b9

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


This Subtopic addresses consolidation accounting for health care entities within the scope of this Topic.

##### [810-954-05-2](https://asc.understandingaccounting.org/asc/810/954/#810-954-05-2)

Pending content: no

Source downloaded (UTC): 2026-09-10T01:32:44.347Z to 2026-09-10T01:32:44.347Z

Record version: sha256:6ac953e25104f74c29b818d3a0733acd2e8786c0a1b3587ff2f888be022f5522

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


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, 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. The system also may own stock in various for-profit ventures such as [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.") or insurance entities that may or may not provide patient care. Fundraising typically is accomplished through a separate foundation. Foundations, auxiliaries, guilds, and similar entities frequently assist and, in many instances, are related to the health care entity.

##### [810-954-05-3](https://asc.understandingaccounting.org/asc/810/954/#810-954-05-3)

Pending content: no

Source downloaded (UTC): 2026-09-10T01:32:44.347Z to 2026-09-10T01:32:44.347Z

Record version: sha256:ec0a5075366c154f3a34669fb5ef2a7f959dc233192e917210ea1d3628355dde

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


The rights and powers of the controlling entity may vary depending on the legal structure of the controlled entity and the nature of [control](https://asc.understandingaccounting.org/glossary/c/#control "The direct or indirect ability to determine the direction of management and policies through ownership, contract, or otherwise."). 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. However, in other situations, the rights of the controlling party may be more limited. 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.