Statements of Position



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This Guide applies to organizations 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; it also applies to organizations whose primary activities are the planning, organization, and oversight of such organizations, such as parent or holding companies of health care providers. This Guide applies to health care organizations that are either (a) investor-owned businesses or (b) not-for-profit organizations that have no ownership interest and are essentially self-sustaining from fees charged for goods and services, as defined in Financial Accounting Standards Board (FASB) Statement of Financial Accounting Concepts No. 4, Objectives of Financial Reporting by Nonbusiness Organizations, paragraph 8, or (c) governmental. This Guide applies to the following types of health care organizations: 1. Clinics, medical group practices, individual practice associations, individual practitioners, emergency care facilities, laboratories, surgery centers, and other ambulatory care organizations; 2. Continuing care retirement communities (CCRCs); 3. Health maintenance organizations (HMOs) and similar prepaid health care plans; 4. Home health agencies; 5. Hospitals; 6. Nursing homes that provide skilled, intermediate, and less intensive levels of health care; 7. Drug and alcohol rehabilitation centers and other rehabilitation facilities; This Guide also applies to integrated delivery systems that include one or more of the above types of organizations. This Guide does not apply to voluntary health and welfare organizations, as defined in FASB Statement No. 117, Financial Statements of Not-for-Profit Organizations. These organizations should follow the AICPA Audit and Accounting Guide Not-for-Profit Organizations. Related fund-raising foundations that meet the definition of a not-for-profit organization given in FASB Statement No. 117 also should follow the AICPA Audit and Accounting Guide Not-for-Profit Organizations. When separate financial statements are issued for a state or local governmental health care organization that uses enterprise fund accounting and reporting, the accounting, reporting, and disclosure requirements set forth in this Guide and by pronouncements of the Governmental Accounting Standards Board (GASB) apply. (See chapter 1 for a discussion of the application of GAAP.)

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Health facilities -- United States -- Auditing; Health facilities -- Accounting -- Standards -- United States


Accounting | Taxation


Originally published by: American Institute of Certified Public Accountants; Copyright and permission to reprint held by: American Institute of Certified Public Accountants.

Proposed audit and accounting guide : health care organizations ;Health care organizations; Exposure draft (American Institute of Certified Public Accountants), 1995, April 14



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