Healthcare · capitation + implicit price concessions

Why this pattern exists

Provider receives gross charges but actual collection is much lower due to insurance contracts, government rates, and self-pay write-offs. ASC 606 treats these as price concessions, not bad debt expense.

Trigger conditions

Authoritative paragraphs

Every codification reference below is verified against the FASB Codification structure or Big-4 public guidance. No fabricated cites.

End-to-end behavior

1. 1Gross-charge-to-net-revenue waterfall
2. 2Implicit price concession reserves with rolling true-ups
3. 3Capitation revenue with deficit/surplus settlement
4. 4DRG bundle PO classification

What auditors flag

Common mistakes preparers make on this pattern. The platform's confidence routing surfaces these for reviewer ratification before sign-off.