Which type of revenue includes unrestricted interest and dividend income in a healthcare entity?

Nonoperating revenue includes items such as unrestricted interest and dividend income in a healthcare entity because this type of revenue is derived from activities that are not part of the primary business operations. Healthcare entities primarily generate revenue through patient services; however, any income from investments, such as interest and dividends, is classified as nonoperating revenue. This distinction is important because it helps users of financial statements understand the sources of revenue and the performance of the organization in its core operations versus other financial activities.

In contrast, patient service revenue and operating revenue relate directly to the core services provided by the healthcare entity, such as medical treatment and care. Charitable contributions, while a source of income for healthcare providers, are specifically related to donations rather than investment income, placing them outside the scope of unrestricted interest and dividends. Therefore, recognizing unrestricted interest and dividend income as nonoperating revenue accurately reflects the nature of these financial activities.