nerdexam
(ISC)2

HCISPP · Question #179

This type of hospital is privately owned.

The correct answer is A. For Profit. For-profit hospitals are privately owned by investors, shareholders, or corporations with the primary goal of generating revenue and returning profits to their owners - making option A correct. Option B (Not for Profit) is incorrect because not-for-profit hospitals, while they…

Healthcare Industry

Question

This type of hospital is privately owned.

Options

  • AFor Profit
  • BNot for Profit

How the community answered

(35 responses)
  • A
    91% (32)
  • B
    9% (3)

Explanation

For-profit hospitals are privately owned by investors, shareholders, or corporations with the primary goal of generating revenue and returning profits to their owners - making option A correct.

Option B (Not for Profit) is incorrect because not-for-profit hospitals, while they may also be privately operated, are owned by nonprofit organizations (often religious or community-based) and must reinvest any surplus revenue back into the hospital rather than distributing it to owners or shareholders.

Memory tip: Think of it this way - "For Profit = For an Owner." If someone profits from the hospital, they own it as a private business investment. Not-for-profit = no private owner pocketing the gains.

Topics

#Hospital Ownership#For-Profit Model#Healthcare Business Structure

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