# ASC 954-10: Health Care Entities — Overall Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/954/10/) 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): 2026-09-10T02:20:57.129Z to 2026-09-10T02:21:05.879Z Record version: sha256:dd7fa44963bcdaecfec948d39a524d8678d606277e6bef9c0d4df65155806e80 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 954-10: Health Care Entities — Overall ### Machine-generated study aids ```json { "summary": "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).", "key_points": [ "Health care entities are those whose principal operations consist of providing (or agreeing to provide) health care services and that derive all or almost all revenues from the sale of goods or services, plus parent/holding companies whose primary activities are planning, organization, and oversight of such entities (954-10-15-1A).", "The Topic lists covered entity types including clinics, medical group practices, continuing care retirement communities, HMOs and similar prepaid plans, home health agencies, hospitals, nursing homes, rehabilitation facilities, and integrated delivery systems (954-10-15-1B).", "Guidance applies only if the entity is investor-owned (private equity interest, profit objective) or a not-for-profit, business-oriented entity (no ownership interests, 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 and fall within Topic 958 rather than this Topic (954-10-15-3).", "The Subtopics in Topic 954 provide only incremental industry-specific guidance; entities in scope must also comply with applicable guidance outside the Topic (954-10-15-1).", "Not-for-profit, business-oriented health care entities also apply Topic 958 guidance on contributions, transfers of assets and agency transactions, split-interest agreements, NFP financial statements, promises to give, NFP mergers and acquisitions, consolidation, and services received from personnel of an affiliate (954-10-05-3).", "Topic 954 also provides incremental guidance for investor-owned health care entities (954-10-05-4)." ], "categories": [ "Industry-specific", "Not-for-profit", "Financial statement presentation" ], "audience_level": "introductory", "student_note": "This is a scoping subtopic: the exam trap is assuming Topic 954 replaces general GAAP, when it only adds incremental guidance, and assuming all NFP health care entities are here — non-business-oriented (voluntary health and welfare) entities go to Topic 958.", "related_topics": [ "958", "958-605", "958-205", "958-805", "958-810", "954-605" ], "key_concepts": [ "health care entity", "investor-owned health care entity", "not-for-profit business-oriented entity", "incremental industry guidance", "voluntary health and welfare entity", "continuing care retirement community", "integrated delivery system", "scope" ] } ``` Source downloaded (UTC): 2026-09-10T02:20:57.129Z to 2026-09-10T02:20:57.129Z Record version: sha256:d05b20c5b56675d80595e672713522113019ac76a38e142b3adaad46081e403a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 954-10-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/954/10/#00-status) SEC content: no ##### [954-10-00-1](https://asc.understandingaccounting.org/asc/954/10/#954-10-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:20:57.129Z to 2026-09-10T02:20:57.129Z Record version: sha256:665e3bacde4aa8e27106de846d893f65466a831ded60355682619de58666d699 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
AffiliateAmendedMaintenance Update 2018-12 (PDF)09/10/2018
AffiliateAddedAccounting Standards Update No. 2013-0604/19/2013
Conditional ContributionAddedAccounting Standards Update No. 2018-0806/21/2018
ContributionAmendedAccounting Standards Update No. 2018-0806/21/2018
ContributionAmendedAccounting Standards Update No. 2010-0701/28/2010
Donor-Imposed ConditionAddedAccounting Standards Update No. 2018-0806/21/2018
Not-for-Profit EntityAddedAccounting Standards Update No. 2010-0701/28/2010
Prepaid Health Care PlanAddedAccounting Standards Update No. 2014-0905/28/2014
Promise to GiveAddedAccounting Standards Update No. 2018-0806/21/2018
954-10-05-1AmendedMaintenance Update 2021-02 (PDF)01/19/2021
954-10-05-1AmendedAccounting Standards Update No. 2016-0101/05/2016
954-10-05-1AmendedAccounting Standards Update No. 2014-0905/28/2014
954-10-05-1AmendedAccounting Standards Update No. 2010-0701/28/2010
954-10-05-3AmendedAccounting Standards Update No. 2013-0604/19/2013
954-10-05-3AmendedAccounting Standards Update No. 2010-0701/28/2010
954-10-15-1BAmendedAccounting Standards Update No. 2014-0905/28/2014
Source downloaded (UTC): 2026-09-10T02:20:59.408Z to 2026-09-10T02:20:59.408Z Record version: sha256:24ee34ce0dd7ae5dff91160ea394a891303fedfe7d978af72fac81d505bb5de1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 954-10-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/954/10/#05-overview-and-background) SEC content: no ##### [954-10-05-1](https://asc.understandingaccounting.org/asc/954/10/#954-10-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:20:59.408Z to 2026-09-10T02:20:59.408Z Record version: sha256:a11d11a84bd366c9d3986ab0d09ca2d3f0a8203cdd2d17135bfc4c40af4f2b04 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/updates/asu-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](https://asc.understandingaccounting.org/updates/asu-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. ##### [954-10-05-2](https://asc.understandingaccounting.org/asc/954/10/#954-10-05-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:20:59.408Z to 2026-09-10T02:20:59.408Z Record version: sha256:f54c1e839307f9e17ca3d7c075c12049779978eaab7ffd0afbf0f4768494a317 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/glossary/c/#contribution "An unconditional transfer of cash or other assets, as well as unconditional promises to give, to an entity or a reduction, settlement, or cancellation of its liabilities in a voluntary nonreciprocal transfer by another entity acting other than as an owner. Those characteristics distinguish contributions from:Exchange transactions, which are reciprocal transfers in which each party receives and sacrifices approximately commensurate valueInvestments by owners and distributions to owners, which are nonreciprocal transfers between an entity and its ownersOther nonreciprocal transfers, such as impositions of taxes or legal judgments, fines, and thefts, which are not voluntary transfers. In a contribution transaction, the resource provider often receives value indirectly by providing a societal benefit although that benefit is not considered to be of commensurate value. In an exchange transaction, the potential public benefits are secondary to the potential direct benefits to the resource provider. The term contribution revenue is used to apply to transactions that are part of the entity's ongoing major or central activities (revenues), or are peripheral or incidental to the entity (gains). See also Inherent Contribution and Conditional Contribution.") of relatively small amounts from resource providers that do not expect commensurate or proportionate pecuniary return. #### Not-for-Profit, Business-Oriented Health Care Entities ##### [954-10-05-3](https://asc.understandingaccounting.org/asc/954/10/#954-10-05-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:20:59.408Z to 2026-09-10T02:20:59.408Z Record version: sha256:eadcf3d300483fa86028a9d27660f79593c22788fe17b26f9ce8e7407a87e802 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/glossary/n/#not-for-profit-entity "An entity that possesses the following characteristics, in varying degrees, that distinguish it from a business entity: Contributions of significant amounts of resources from resource providers who do not expect commensurate or proportionate pecuniary return Operating purposes other than to provide goods or services at a profit Absence of ownership interests like those of business entities. Entities that clearly fall outside this definition include the following: All investor-owned entities Entities that provide dividends, lower costs, or other economic benefits directly and proportionately to their owners, members, or participants, such as mutual insurance entities, credit unions, farm and rural electric cooperatives, and employee benefit plans.") (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](https://asc.understandingaccounting.org/glossary/a/#affiliate "A party that, directly or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with an entity. See Control.") (see Subtopic 958-720). #### Investor-Owned Health Care Entities ##### [954-10-05-4](https://asc.understandingaccounting.org/asc/954/10/#954-10-05-4) Pending content: no Source downloaded (UTC): 2026-09-10T02:20:59.408Z to 2026-09-10T02:20:59.408Z Record version: sha256:b6d53ff30e0f31e3f591638d40212f9ca3efda88719ac018a7edc014360b99a6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Topic also provides incremental guidance for investor-owned health care entities. Source downloaded (UTC): 2026-09-10T02:21:02.824Z to 2026-09-10T02:21:02.824Z Record version: sha256:65d13c5adc6e7fb4127486595643513c25e4906daf030f2a2ca50c688b2f72f5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 954-10-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/954/10/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [954-10-15-1](https://asc.understandingaccounting.org/asc/954/10/#954-10-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:21:02.824Z to 2026-09-10T02:21:02.824Z Record version: sha256:30399ec797e4f133098231674cb739fde7d14932d05ba6bb4ba7142d93f3a7a2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Subtopics within the Health Care Entities Topic only provide incremental industry-specific guidance for the entities defined in the Scope Section or as further defined in the individual Health Care Entities Subtopics. Entities within the scope of this Topic shall also comply with the applicable guidance not included in this Topic. #### Entities ##### [954-10-15-1A](https://asc.understandingaccounting.org/asc/954/10/#954-10-15-1A) Pending content: no Source downloaded (UTC): 2026-09-10T02:21:02.824Z to 2026-09-10T02:21:02.824Z Record version: sha256:3594b94ec899696b56f5868e3c497f72272034ae62f89ec058b999b9e27ebca5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Health Care Entities Topic applies to health care entities, which are the following types of entities: 1. a Entities whose principal operations consist of providing or agreeing to provide health care services and that derive all or almost all of their revenues from the sale of goods or services 2. b Entities whose primary activities are the planning, organization, and oversight of such entities, such as parent or holding companies of health care providers. ##### [954-10-15-1B](https://asc.understandingaccounting.org/asc/954/10/#954-10-15-1B) Pending content: no Source downloaded (UTC): 2026-09-10T02:21:02.824Z to 2026-09-10T02:21:02.824Z Record version: sha256:530b6f13c5e095d5890cb7154f3582b9d8591b7de7609952f314840b4595fbca Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Health Care Entities Topic applies to the following types of health care entities: 1. a Clinics, medical group practices, individual practice associations, individual practitioners, emergency care facilities, laboratories, surgery centers, and other ambulatory care entities 2. b Continuing care retirement communities 3. c Health maintenance organizations and similar prepaid health care plans 4. d Home health agencies 5. e Hospitals 6. f Nursing homes that provide skilled, intermediate, and less intensive levels of health care 7. g Drug and alcohol rehabilitation centers and other rehabilitation facilities 8. h Integrated delivery systems that include one or more of the above types of entities. ##### [954-10-15-2](https://asc.understandingaccounting.org/asc/954/10/#954-10-15-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:21:02.824Z to 2026-09-10T02:21:02.824Z Record version: sha256:0a39ac8bc616a5cbbee345c9ecdcbed1fe5cfd841e0e1efd92f8d3824c9af978 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Health Care Entities Topic provides guidance for entities described in the previous paragraph if they are either: 1. a Investor-owned health care entities 2. b Not-for-profit, business-oriented entities. See Section 954-10-05 for a description of these entities. ##### [954-10-15-3](https://asc.understandingaccounting.org/asc/954/10/#954-10-15-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:21:02.824Z to 2026-09-10T02:21:02.824Z Record version: sha256:c952092b4b7ec35b8961ff5135b3b4414d81270b8b65d4a60f4ed9b3152cf968 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Not-for-profit, non-business-oriented entities are voluntary health and welfare entities as defined in Topic 958. Such entities are within the scope of that Topic rather than this Topic.