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.
Position Statements
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.
Issue Analyses
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.
Current Activity
Currently, the P&P Board is performing an in-depth review of statements 16, 18, and 19. The group is also working with the healthcare accounting field to implement the significant updates made to P&P Board Statement 15, which addresses how to report charity care and bad debt. The updates will improve the measurement and reporting of these two important forms of uncompensated care.
To contact the P&P Board, or for further information, please email HFMA's Washington D.C., office at (202) 296-2920 or via e-mail.
2009-2010 P&P Board Members
Mary C. Connick, CPA, P&P Board Chair
Vice President
Catholic Healthcare West, San Francisco CA
Vincent E. Pryor, CPA, FHFMA, P&P Board Co-Chair
Vice President Finance & CFO
Ingalls Health System, Orland Park IL
Pedro Antonio Alfaro, CPA
Chief Financial Officer
Miami Children's Hospital, Miami FL
Mark D. Albrecht
Manager
Deloitte & Touche LLP, Minneapolis MN
Martin Arrick
Managing Director
Standard & Poor's, Hastings on Hudson NY
Joe Becht, Jr., CPA, FHFMA
Partner
Ernst & Young, Richmond VA
Paul Briggs, CPA
Senior Vice President, CFO
Presbyterian Healthcare Services, Albuquerque NM
Barbara L. Potts, CPA
Director Financial Reporting
Ascension Health, Saint Louis MO
Marc B. Scher, CPA
Partner
KPMG LLC, Saint Louis MO
Robert M. Valletta, CPA, FHFMA
Partner
Pricewaterhousecoopers, LLP, Boston MA
Stella M. Visaggio, CPA, FHFMA
Chief Financial Officer
Hackettstown Regional Medical Ctr, Hackettstown NJ
Robert A. Wright, CPA
Partner
Mcgladrey & Pullen, Rockford IL