The development of hospital financial accounting in the USA

This paper examines the history of financial accounting in American hospitals from the turn of the twentieth century to the present. It argues that, prior to the 1970s, the financial accounting practices of hospitals differed significantly from their counterparts in the business world as health-service organisations, institutions and legislation rather than accounting bodies and standards were the principal influence on their development. The paper moreover argues that the increasing influence of the Financial Accounting Standards Board on financial accounting in American hospitals has resulted in a growing convergence between accounting practices in hospitals and the wider economy since the early 1970s.