Accounting for Health Care Providers | Not for Profit Accounting | CPA Exam FAR

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Farhat's Accounting Lectures
Published at : 23 Jan 2021
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re accounted for similar to businesses. Not-for-profit hospitals are also accounted for similar to businesses but, nevertheless, must adhere to the reporting standards that the FASB has established for not-for-profits in general. Hence, their statements must provide information on the three categories of restrictiveness. Health care organizations are distinguished from other types of organizations by several unique reve-nues and expenses. These include • Fee for service patient care revenues. These are usually established at the providers’ standard rates. However, allowances must be made for anticipated bad debts and third-party payer discounts, both of which are often substantial. • Capitation fee revenues. These are recognized over the period covered, rather than as services are provided.

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accounting for healthcare organizationsaccounting for healthcareaccounting for hospital

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