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The most appropriate initial corrective action after detecting Legionella in a hospital's water supply is to determine the source of the bacteria. This step is crucial because identifying the source enables the healthcare facility to implement targeted measures to eradicate the bacteria from the water system and prevent future occurrences. Knowing where the Legionella is coming from—whether it's a specific part of the water system or a malfunctioning piece of equipment—helps inform the actions needed to address the contamination effectively.

Relocating patients, while it may seem prudent for their safety, does not address the root problem and may not be necessary if the source can be promptly identified and remedied. Similarly, reporting the incident to the public health department is a critical step in ensuring compliance and public safety but should follow the immediate actions necessary to safeguard patient health. Continuing to treat patients without addressing the water supply's contamination poses a risk to their health, undermining the goal of ensuring a safe healthcare environment.