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C is corrent. The hospital should report the cash received from the insurance company, the cash received from the intern program, and the cash received from interest as operating activities. Cash received for permanent investment should be reported as a financing activity on the statement of cash flows. Thus, this answer is correct since only permanent investment is a financing activity.
A is incorrect because only cash received for permanent investment should be reported as a financing activity on the statement of cash flows. 
B is incorrect because only cash received for permanent investment should be reported as a financing activity on the statement of cash flows. 
D is incorrect because only cash received for permanent investment should be reported as a financing activity on the statement of cash flows.