Health Care Entities

ASC 954 is the industry Topic for health care entities, and its Overall subtopic (954-10) does the scoping work: it defines a health care entity as one whose principal operations consist of providing health care services with all or almost all revenues from the sale of goods or services (plus parent/holding companies that plan, organize, and oversee such entities) (954-10-15-1A), and lists covered entity types such as hospitals, clinics, medical group practices, CCRCs, HMOs, home health agencies, nursing homes, and integrated delivery systems (954-10-15-1B). The Topic applies only to investor-owned entities (private equity interests, profit objective) and not-for-profit, business-oriented entities that are essentially self-sustaining from fees charged for goods and services (954-10-05-2; 954-10-15-2); not-for-profit, non-business-oriented entities are voluntary health and welfare entities addressed by Topic 958 (954-10-15-3). The single most important idea is that Topic 954 is purely incremental: in-scope entities must also follow all other applicable GAAP, and NFP business-oriented health care entities additionally apply Topic 958 guidance on contributions, split-interest agreements, NFP financial statements, promises to give, NFP mergers and acquisitions, consolidation, and services received from personnel of an affiliate (954-10-15-1; 954-10-05-3; 954-10-05-4).

Subtopics

1. 10Overall10 ¶

   ASC 954-10 is the Overall subtopic of the Health Care Entities Topic; it lists the industry Subtopics and defines which entities the Topic covers. The Topic supplies only incremental industry-specific guidance for investor-owned health care entities and not-for-profit, business-oriented health care entities, which must otherwise follow all other applicable GAAP (including Topic 958 for NFPs).

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