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Terminology

Hospital Ownership and Funding

County
Not-for-profit hospital that is operated and supported by a county government.

Investor-Owned
Hospital in which any profit is returned to its shareholders. The initial source of funding for this type of hospital is typically through the sale of stock.

Leased
Hospital (lessor) that, under an agreement with another hospital, corporation or individual (lessee), gives the lessee the right to use the hospital’s property and all profits from it for a defined period of time and entitles the hospital to receive payment for this use and to enforce any restrictions agreed to in the contract for lease.

Managed
Hospital where day-to-day management is contracted to another organization under a formal contract. The managed hospital retains total legal responsibility and ownership of the hospital’s assets and liabilities.

Military
Hospital owned by the federal government that treats active duty and retired military personnel and their dependents.

Not-For-Profit (Voluntary)
Hospital that operates on a not-for-profit basis under the ownership and control of a private corporation. Typically, such a hospital is run by a board of trustees, is exempt from federal tax requirements, and uses its profits to cover capital expenses and future operating costs.

Private
Hospital that is under ownership or control of a private corporation. Private hospitals can be investor-owned or not-for-profit.

Public
Not-for-profit hospital operated and supported by a city, county or state government.

Veterans
Hospital owned by the federal government and operated by the Veterans Administration to provide services to veterans.