Common ASC 606 Issues: Health Care Entities

Authors

Morgan Hunsaker, Brigham Young University - Provo
Jeff Wilks, Brigham Young University - ProvoFollow
Steven Driscoll, Brigham Young University - Provo

Keywords

healthcare revenue challenges, ASC 606 adoption, complex payment arrangements

Abstract

In 2018, Accounting Standards Codification (ASC) Topic 606 became effective for all public companies. This major overhaul of revenue recognition has affected almost every industry, and healthcare entities are no exception. Due to various payment methodologies, self-pay patients, and numerous services that may be involved in a single contract, the complex arrangements between healthcare providers, patients, and insurance companies pose some interesting challenges when applying the standard.

In this article, we provide a brief explanation of the key issues the healthcare industry faces when applying ASC 606, drawing on the following helpful guides published by the AICPA and the major accounting firms.

Original Publication Citation

Common ASC 606 Issues: Health Care Entities (M. Hunsaker, T. J. Wilks, and S. Driscoll), RevenueHub, January 8, 2018, updated December 22, 2020. (8,993 unique views as of Jan. 13, 2023)

BYU ScholarsArchive Citation

Hunsaker, Morgan; Wilks, Jeff; and Driscoll, Steven, "Common ASC 606 Issues: Health Care Entities" (2020). Faculty Publications. 8657.
https://scholarsarchive.byu.edu/facpub/8657

Document Type

Peer-Reviewed Article

Publication Date

2020

Publisher

RevenueHub

Language

English

College

Marriott School of Business

Department

Accountancy

University Standing at Time of Publication

Full Professor

Copyright Use Information

https://lib.byu.edu/about/copyright/