Final answer:
A privately owned hospital that distributes excess income to shareholders and owners is a for-profit hospital. This is distinct from nonprofit or government-operated hospitals, which do not distribute profits to shareholders.
Step-by-step explanation:
A hospital that is privately owned and whose excess income is distributed to shareholders and owners is a for-profit hospital. This type of hospital is also referred to as a private hospital. The key characteristics of a for-profit hospital include being owned by private investors or shareholders and focusing on generating financial profit, which is then distributed among the owners or shareholders as dividends.
In contrast, a non-profit health organization does not distribute its excess funds to owners or shareholders but reinvests them into the organization to improve its services. A public hospital is typically funded and operated by a governmental agency like Health and Social Services, serving the public interest. A governmental hospital is one that is fully operated by the government, unlike a for-profit or non-profit private entity.