{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/954/10/#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":"954","topic_title":"Health Care Entities","subtopic":"954-10","subtopic_title":"Overall","section":{"number":"05","label":"05 Overview and Background","anchor":"05-overview-and-background","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"954-10-05-1","para":"05-1","html":"
The Health Care Entities Topic includes the following Subtopics relating specifically to entities in the health care industry:
  1. a
    Overall
  2. b
    Presentation of Financial Statements
  3. c
    Balance Sheet
  4. d
    Income Statement
  5. e
    Segment Reporting
  6. f
    Cash and Cash Equivalents
  7. g
    Receivables
  8. h
    Subparagraph superseded by Accounting Standards Update No. 2016-01.
  9. i
    Investments—Other
  10. j
    Other Assets and Deferred Costs
  11. k
    Property, Plant, and Equipment
  12. l
    Liabilities
  13. m
    Subparagraph superseded by Accounting Standards Update No. 2014-09.
  14. n
    Commitments
  15. o
    Contingencies
  16. p
    Guarantees
  17. q
    Debt
  18. r
    Revenue Recognition—Charity Care and Related Fundraising Entities
  19. s
    Other Expenses
  20. t
    Income Taxes
  21. tt
    Business Combinations (Mergers and Acquisitions)
  22. u
    Consolidation
  23. v
    Derivatives and Hedging
  24. w
    Financial Instruments.
","snippet":"The Health Care Entities Topic includes the following Subtopics relating specifically to entities in the health care industry:\n(a) Overall\n(b) Presentation of Financial Statements\n(c) Balance Sheet\n(d) Income Statement\n(…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a11d11a84bd366c9d3986ab0d09ca2d3f0a8203cdd2d17135bfc4c40af4f2b04","downloaded_from":"2026-09-10T02:20:59.408Z","last_downloaded_at":"2026-09-10T02:20:59.408Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481036","source_sha256":"d29ee681306c29eddd89499254d4a58c6c9a9f2980bbf8c8e61c7e601bda110a"}},{"citation":"954-10-05-2","para":"05-2","html":"
Within the Health Care Entities Topic, health care entities usually can be classified into the following categories on the basis of their operating characteristics:
  1. a
    Investor-owned health care entities. These are owned by investors or others with a private equity interest and provide goods or services with the objective of making a profit.
  2. b
    Not-for-profit, business-oriented entities. These are characterized by no ownership interests and essentially are self-sustaining from fees charged for goods and services. The fees charged by such entities generally are intended to help the entity maintain its self-sustaining status rather than to maximize profits for the owner's benefit. Such entities often are exempt from federal income taxes and may receive contributions of relatively small amounts from resource providers that do not expect commensurate or proportionate pecuniary return.
","snippet":"Within the Health Care Entities Topic, health care entities usually can be classified into the following categories on the basis of their operating characteristics:\n(a) Investor-owned health care entities. These are owne…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f54c1e839307f9e17ca3d7c075c12049779978eaab7ffd0afbf0f4768494a317","downloaded_from":"2026-09-10T02:20:59.408Z","last_downloaded_at":"2026-09-10T02:20:59.408Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481036","source_sha256":"d29ee681306c29eddd89499254d4a58c6c9a9f2980bbf8c8e61c7e601bda110a"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d1c4f51321506e2d3c10708846413d726025a3f9bed4f131791e80e99db29a40","downloaded_from":"2026-09-10T02:20:59.408Z","last_downloaded_at":"2026-09-10T02:20:59.408Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481036","source_sha256":"d29ee681306c29eddd89499254d4a58c6c9a9f2980bbf8c8e61c7e601bda110a"}},{"block":null,"heading":"Not-for-Profit, Business-Oriented Health Care Entities","paragraphs":[{"citation":"954-10-05-3","para":"05-3","html":"
This Topic provides specific incremental reporting guidance for not-for-profit, business-oriented health care entities. The guidance in Topic 958 applies to all not-for-profit entities (NFPs), regardless of whether the entity is essentially self-sustaining from fees charged for goods and services. The following Subtopics, among others in that Topic, provide guidance that is applicable to not-for-profit, business-oriented health care entities:
  1. a
    Contributions (see the Contributions Received Subsections of Subtopic 958-605), which include all of the following:
    1. 1
      Permanent endowments
    2. 2
      Gifts in kind
    3. 3
      Contributed utilities, facilities, or use of long-lived assets.
  2. b
    Transfers to an NFP or charitable trust that raises or holds contributions for others (see the Transfers of Assets Subsections of Subtopic 958-605)
  3. c
    Contributions received by agents, trustees, and intermediaries (see the Transfers of Assets Subsections of Subtopic 958-605)
  4. d
    Split-interest agreements (see Subtopic 958-30)
  5. e
    Financial statements of NFPs (see Topic 958), which include all of the following:
    1. 1
      Presentation in financial statements (see Subtopic 958-205)
    2. 2
      Statement of financial position (see Subtopic 958-210)
    3. 3
      Statement(s) of operations and changes in net assets (see Subtopic 958-220)
    4. 4
      Statement of cash flows (see Subtopic 958-230).
  6. f
    Promises to give (see Subtopic 958-310)
  7. ff
    Business combinations (see Subtopic 958-805), which include all of the following:
    1. 1
      Mergers of not-for-profit entities
    2. 2
      Acquisitions by not-for-profit entities
  8. g
    Consolidation (see Subtopic 958-810)
  9. h
    Services received from personnel of an affiliate (see Subtopic 958-720).
","snippet":"This Topic provides specific incremental reporting guidance for not-for-profit, business-oriented health care entities. The guidance in Topic 958 applies to all not-for-profit entities (NFPs), regardless of whether the e…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:eadcf3d300483fa86028a9d27660f79593c22788fe17b26f9ce8e7407a87e802","downloaded_from":"2026-09-10T02:20:59.408Z","last_downloaded_at":"2026-09-10T02:20:59.408Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481036","source_sha256":"d29ee681306c29eddd89499254d4a58c6c9a9f2980bbf8c8e61c7e601bda110a"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c8abd2a23f30cfccdd511523d5923386c504fb680701a018fbc8b5bcb6579c2c","downloaded_from":"2026-09-10T02:20:59.408Z","last_downloaded_at":"2026-09-10T02:20:59.408Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481036","source_sha256":"d29ee681306c29eddd89499254d4a58c6c9a9f2980bbf8c8e61c7e601bda110a"}},{"block":null,"heading":"Investor-Owned Health Care Entities","paragraphs":[{"citation":"954-10-05-4","para":"05-4","html":"
The guidance in this Topic also provides incremental guidance for investor-owned health care entities.
","snippet":"The guidance in this Topic also provides incremental guidance for investor-owned health care entities.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b6d53ff30e0f31e3f591638d40212f9ca3efda88719ac018a7edc014360b99a6","downloaded_from":"2026-09-10T02:20:59.408Z","last_downloaded_at":"2026-09-10T02:20:59.408Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481036","source_sha256":"d29ee681306c29eddd89499254d4a58c6c9a9f2980bbf8c8e61c7e601bda110a"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b08b0b4334359a4b651fd55b4d31b1e3f8a4f22fcfd628a7e19ded72ec0a5497","downloaded_from":"2026-09-10T02:20:59.408Z","last_downloaded_at":"2026-09-10T02:20:59.408Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481036","source_sha256":"d29ee681306c29eddd89499254d4a58c6c9a9f2980bbf8c8e61c7e601bda110a"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:24ee34ce0dd7ae5dff91160ea394a891303fedfe7d978af72fac81d505bb5de1","downloaded_from":"2026-09-10T02:20:59.408Z","last_downloaded_at":"2026-09-10T02:20:59.408Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481036","source_sha256":"d29ee681306c29eddd89499254d4a58c6c9a9f2980bbf8c8e61c7e601bda110a"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:24ee34ce0dd7ae5dff91160ea394a891303fedfe7d978af72fac81d505bb5de1","downloaded_from":"2026-09-10T02:20:59.408Z","last_downloaded_at":"2026-09-10T02:20:59.408Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481036","source_sha256":"d29ee681306c29eddd89499254d4a58c6c9a9f2980bbf8c8e61c7e601bda110a"}}