Raccoon Hospital was the primary medical center in Raccoon City, where Umbrella secretly housed a small laboratory dedicated to researching both vaccines against the T-Virus (completely independent of the research at Raccoon University which would eventually yield Daylight) and developing new BOWs, specifically the Hunters Gamma and Hunters Beta|. During the initial outbreak of the T-Virus in the city, the Raccoon Hospital was where many infected citizens turned for medical attention.
Unfortunately, not only where the doctors and nurses unable to treat the infected, must less deal with the overflow of patients, but the hospital soon became infested with overgrown, mutant leeches, which turned the building into a hive of sorts, which preyed upon the unprepared staff members. The doctor who survived the longest inside the building was Hursh, but he too fell victim to the horrific bloosuckers in time.
Although these leeches were exterminated by the time Carlos Oliveria arrived searching for the vaccine which would save Jill Valentine, the Hunter prototypes had since escaped their containment tubes and ran wild through the hospital. Ultimately, the hospital was destroyed with a bomb by Nicholai Ginovaef.