HFMA established the Principles and Practices (P&P) Board in 1975 to reevaluate, clarify, and establish accounting principles and financial reporting practices of health service organizations.
The P&P Board consists of twelve members who have demonstrated technical competence in the industry and possess outstanding personal and professional qualities. At least six members must be employees of provider organizations; six or fewer members must work in organizations that serve the industry.
Liaison with Standards-Setting Bodies
The P&P Board works with the AICPA, the Financial Accounting Standards Board, and the Governmental Accounting Standards Board to address the unique financial reporting needs of healthcare organizations and improve consistency in accounting and financial reporting among different ownership types.
The first P&P Board statement of position addressing healthcare accounting principles and financial reporting practices was published in 1977. Since then, it has issued 20 statements on topics ranging from valuing accounts receivable to reporting business combinations. Prior to issuance, a proposed position statement follows an extensive "due process." An exposure draft is released for public comment for at least 60 days. These comments are analyzed and reviewed by the P&P Board. The HFMA Board approves the publication of the final position statements. P&P Board statements have been well-received by the accounting profession and regulators; the IRS has recommended adherence to P&P Board Statement No. 15 in all representations regarding charity care, and the SEC has cited P&P Board Statement No. 18 as "market practice" for disclosure for the healthcare industry.
Access P&P Board statements.
The P&P Board also releases issue analyses, which provide short-term assistance by assembling current literature on emerging issues. An issue analysis is not sent out for public comment.
Review listing of P&P Board publications.
To contact the P&P Board, or for further information, please call HFMA's Washington D.C., office at (202) 296-2920.
2012-2013 P&P Board Members
Seated, left to right: Joseph M. Lemaire; Gordon T. Edwards; Marc B. Scher; Carole T. Faig; Mark D. Albrecht
Standing, left to right: Kevin F. Brennan; Barbara L. Potts; Robert S. Shapiro; Francisco Mendez-Gonzalez
Not pictured: Jennifer P. Marion; Robert M. Valletta; Jeff Schaub
Marc B. Scher, CPA, P&P Board Chair
Carole T. Faig, CPA, P&P Board Co-Chair
Ernst & Young LLP
Mark D. Albrecht, CPA
Deloitte & Touche LLP
Los Angeles, CA
Kevin F. Brennan, FHFMA, CPA
Executive VP, Finance & CFO
Geisinger Health System
Gordon T. Edwards, FHFMA
Chief Financial Officer
Gundersen Lutheran Health System
La Crosse, WI
Joseph M. Lemaire, CPA
Executive Vice President/CFO
Holy Name Hospital
Franklin Lakes, NJ
Jennifer P. Marion, CHFP, CPA
Senior VP, Finance & CFO
Sisters of St. Francis Health Services
Francisco Mendez-Gonzalez, FHFMA, CPA
Lomba, Luciano, Mendez & Dolagaray PSC
San Juan, PR
Barbara L. Potts, CPA
Director Financial Reporting
Saint Louis, MO
New York, NY
Robert. S. Shapiro, FHFMA, CPA
Senior Vice President & CFO
Great Neck, NY
Robert M. Valletta, FHFMA, CPA