Health Care Entities Revenue Recognition Task Force 

    AICPA Revenue Recognition Task Forces are charged with developing revenue recognition implementation issues that will provide helpful hints and illustrative examples for how to apply the new Revenue Recognition Standard.

    Task Force Members:

    • Kimberly McKay, BKD, LLP (Chair)
    • Jay Adkisson, Wipfli LLP
    • Bob Beard, Ernst & Young LLP
    • Cline Comer, CliftonLarsonAllen LLP (retired)
    • Gordon Edwards, PeaceHealth
    • Martha Garner, PricewaterhouseCoopers LLP
    • Nanda Gopal, BDO USA, LLP
    • John Hawryluk, KPMG LLP
    • Brian Murray, Crowe Horwath LLP
    • Susan Paulsen, Paulsen, Megaard & Co. PS
    • Barb Potts, Ascension Health Alliance
    • Chris Pritchard, Moss Adams LLP
    • Mark Ross, ParenteBeard LLC
    • Mike Sorelle, Grant Thornton LLP
    • Deborah Stokes, Kaiser Foundation Health Plan
    • Don Street, HCA Holdings, Inc.
    • Karen Van Compernolle, Deloitte LLP
    • Dan Vandenberghe, McGladrey LLP
    Staff Contact: Andy Mrakovcic,


    Below is a list of potential revenue recognition implementation issues identified by the Health Care Entities Revenue Recognition Task Force. The list will be updated as the task force continues it discussions. Full revenue recognition implementation issues will be posted below for informal comments after review by the AICPA Financial Reporting Executive Committee (FinREC).

    Issue # Description of Implementation Issue
    1 Accounting for revenue contracts that do not meet the collectability threshold, specifically patients with uninsured self-pay balances (including deductibles and co-pays). Consideration of the following regarding self-pay balances:
    • Application of step 1 in determining if there is a contract
    • Application of step 3 in determining the transaction price considering allowances/discounts and implicit price concessions
    • Application of the portfolio approach for self-pay balances
    2 Identifying the performance obligation(s) and recognition of the monthly/periodic fees and refundable and nonrefundable entrance fees under the different types of CCRC contracts (e.g., Type A, B, or C). Consideration of the following for CCRC contracts:
    • Recognizing the performance obligation(s) to provide future services and use of facilities
    • Analysis related to portfolio vs. individual contract approach to revenue recognition
    • Significant financing component considerations for refundable and nonrefundable fees
    3 Scope of prepaid health services as it relates to revenue recognition and the application of FASB ASC 954 vs. ASC 944 Accountable Care Organizations, including shared savings plan
    4 Disclosure requirements as compared to ASU No. 2011-07
    5 Contract acquisition costs for prepaid health services and CCRC entrance fees
    6 Determination (estimation) of transaction price (expected value vs. most likely) as it relates to third party estimates


    Draft Revenue Recognition Implementation Issues included for informal comment, when available, will be listed below.

    Respondents should submit any comments including the implementation issue number to by the dates noted below:

    Issue # Comment Due Date

    The Health Care Entities Revenue Recognition Task Force and Health Care Entities Expert Panel recommend the following AICPA products for current revenue recognition issues:

    A A A

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