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Governmental and Nonprofit Lease Standard Implementation for 2022

Paul Baumert, Healthcare Consulting Shareholder
February 17, 2022
Governmental and Nonprofit Lease Standard Implementation for 2022

Governmental Healthcare Organizations

The Governmental Accounting Standards Board (GASB) issued Statement No. 87, Leases in June of 2017. For reporting periods beginning after June 15, 2021, lessees will now be required to recognize a lease liability at the present value of expected payments net of incentives and an intangible right-to-use asset for all leases with a term greater than 12 months. When payments are made, the liability will be reduced and interest expense recognized. 

 

Nonprofit Healthcare Organizations

The Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842) in February of 2016. For reporting periods beginning on or after January 1, 2022, lessees will now be required to recognize assets and liabilities for leases with terms of more than 12 months. The standard requires the lessee to recognize interest expense and amortization of the associated expense. 

We recommend the healthcare organizations subject to the new lease standards above review the applicable standard and prepare for implementation. If your organization has questions about implementation or needs assistance, please contact us.

  • Relator, Achiever, Restorative, Focus, Belief

Paul Baumert

Healthcare Consulting Shareholder

Paul Baumert, Healthcare Consulting Shareholder, began his career in 1998. With over two decades of experience, he has established himself as a pivotal leader in healthcare accounting and consulting. Since 2011, Paul has led Lutz’s rural hospital practice, showcasing his commitment to serving healthcare organizations.  

Specializing in Medicare and Medicaid reimbursement, cost reporting, and financial analysis, Paul leverages his extensive experience to provide solutions that generate positive financial results for hospitals. His day-to-day responsibilities encompass financial management support services and reimbursement analysis. Paul finds fulfillment in helping rural healthcare facilities maintain their critical role in their communities. 

 

At Lutz, Paul embodies the firm's commitment to serving beyond expectations through his dedication to rural healthcare sustainability. His ability to restore financial health while maintaining meticulous attention to detail has solidified Lutz's position as a trusted advisor to healthcare organizations across the region. As department head, he has cultivated a team that shares his passion for preserving and enhancing rural healthcare access. 

 

Paul lives in Elkhorn, NE, with his wife Shelly, their four children, dog Max, and cats Luna and Oliver. Outside the office, he reads, plays golf, and attends his children’s activities. 

402.827.2315

pbaumert@lutz.us

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