Health care organizations are operated in the public sector at the federal, state, and local government levels. In the private sector, they may be publicly held and traded, operated by religious organizations, or sponsored by local communities. Consequently, providers may be subject to different accounting and reporting standards depending upon their "ownership" and form of organization.
Generally, private sector HCOs are required to follow the guidance in all effective provisions of FASB Accounting Standards Codification. ASC 954, Health Care Entities, contains incremental industry-specific subtopics that are applicable to all HCOs unless they are explicitly scoped out or because the subject matter clearly does not apply (e.g., topics dealing with not-for-profit financial reporting). If an HCO conducts activities in an area covered by another ASC industry topic (e.g., ASC 944, Financial Services -- Insurance), the HCO should apply the incremental industry-specific guidance concerning the recognition and measurement of assets, liabilities, revenues, expenses, and gains and losses to the transactions unique to those industries.
For GAAP applicable to governmental HCOs, see ARM 9812.
The primary users of a health care company's general purpose financial statements are analysts, investors, and providers of capital who make rating and investment decisions in competitive capital markets; suppliers of goods and services to the industry with whom health care companies maintain credit relationships; stockholders and other owners; regulators such as state Departments of Insurance and the Securities and Exchange Commission (SEC); the Federal and state Medicare and Medicaid programs; and other oversight groups.

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