Which term describes a hospital that operates as part of a corporation?

Which term describes a hospital that operates as part of a corporation?

• A. Teaching hospital
• B. Proprietary hospital
• C. Community hospital
• D. Non-profit hospital

Answer: (B)

Ownership and purpose define how a hospital is classified. Hospitals can be nonprofit, reinvesting earnings back into the facility and community, or proprietary, owned by private individuals or corporations to operate for profit. The term that best describes a hospital run as part of a corporation is proprietary hospital, since it reflects corporate ownership and a for-profit motive. This differs from a teaching hospital, which centers on education and training; a community hospital, which describes its service to a local population; and a non-profit hospital, which is organized to reinvest earnings and often has tax-exempt status.

Ownership and purpose define how a hospital is classified. Hospitals can be nonprofit, reinvesting earnings back into the facility and community, or proprietary, owned by private individuals or corporations to operate for profit. The term that best describes a hospital run as part of a corporation is proprietary hospital, since it reflects corporate ownership and a for-profit motive. This differs from a teaching hospital, which centers on education and training; a community hospital, which describes its service to a local population; and a non-profit hospital, which is organized to reinvest earnings and often has tax-exempt status.