What defines a private non-profit hospital?

A private non-profit hospital is typically defined as an organization that is privately owned and operated, and importantly, it does not pay federal taxes due to its non-profit status. This means that while it may generate revenue from providing health care services, any profit made is reinvested into the hospital’s operations or used to improve patient services rather than distributed to shareholders or owners.

Additionally, the non-profit designation often reflects the hospital's mission to serve the community by providing care regardless of patients' ability to pay, thereby allowing it to prioritize health care access over financial gain. The non-profit status is crucial because it enables the hospital to receive various tax exemptions and to qualify for certain types of funding and grants aimed at supporting community health initiatives.

The other options do not accurately capture the essence of private non-profit hospitals. A public hospital, for example, is government-owned and operated, which distinguishes it clearly from a private entity. The notion of operating as a profit-seeking entity with taxation refers to for-profit hospitals, while the definition that relates to offering reduced-cost care only misrepresents the broader mission of non-profit facilities, which also include community health services and other care partnerships. Thus, option C accurately reflects the key characteristics of private non-profit hospitals.