Legally this should be treated as signing under duress and invalidated.
If someone's life or well-being depends on it, and undergoing services in not a choice, terms and conditions should not be legally allowed to be unilaterally dictated by one party.
There are multiple layers of corruption at work here. (They also cap the number of doctors, and clinics, etc).
This doesn't seem surprising on its face given that a hospital is, not unreasonably, a heavily regulated entity.