Business-oriented definition
Business-oriented means that the NFP’s primary source of revenues is fees from the sale of goods and services, consistent with the investor-owned health care organizations (HCOs) that are also within the scope of ASC 954. For these NFPs, the amount of contributions received (if any) is relatively small in comparison to the revenues generated from the sale of goods or services. These characteristics distinguish the NFP HCOs within the scope of ASC 954 from NFP HCOs that are primarily supported by gifts and grants (for example, certain research hospitals). The latter are exclusively within the scope of ASC 958 and, if primarily supported by contributions from the general public, are considered voluntary health and welfare entities, as defined in the ASC Master Glossary.