Final Answer:
A hospital that is privately owned and distributes excess income to shareholders and owners is A for-profit hospital option.c
Step-by-step explanation:
A hospital that is privately owned and distributes excess income to shareholders and owners is a for-profit hospital. These hospitals are operated with the primary goal of generating profits for their owners or shareholders. They are structured as businesses and are subject to the same market forces as other businesses, aiming to maximize revenue and minimize costs in order to generate income for their stakeholders.
For-profit hospitals allocate any surplus income after covering expenses and debt obligations to their shareholders and owners. This surplus income is distributed in the form of dividends or reinvested into the hospital for expansion or improvement projects. The distribution of excess income to shareholders distinguishes for-profit hospitals from non-profit and public hospitals, which have different financial structures and purposes.
8 million in expenses, it may distribute the remaining $2 million as dividends to its shareholders or reinvest it back into the hospital. This profit-driven approach can influence decision-making processes within the hospital, as financial considerations often play a significant role in resource allocation and strategic planning.
In summary, a for-profit hospital operates with the intention of generating profits for its owners and shareholders, distinguishing it from non-profit and public hospitals in terms of financial structure and distribution of surplus income.
Correct option option.c