Which statement about hospitals is most correct?

• A. The majority are investor-owned
• B. The majority are public or not-for-profit
• C. Most hospitals are government-owned
• D. Most hospitals are privately funded by private equity

Answer: (B)

Hospitals in the U.S. are owned by three main groups: nonprofit (not-for-profit) entities, for-profit investor-owned companies, and government-owned (public) facilities. The large majority fall into nonprofit or public ownership, with investor-owned hospitals representing a smaller share. Roughly, about half to two-thirds are nonprofit, another sizable portion are government-owned, and the remaining are for-profit. Because nonprofit and public hospitals together constitute the vast majority, the statement that the majority are public or not-for-profit is the most accurate. Private equity funding and ownership are a minority factor for most hospitals.