I'm not trying to minimize the danger, but this hospital will be treating US, Allied and enemy casualties.
Also, if history is any lesson, military hospitals always prepare for the worst-case senario, so they will be ready for any eventuality. It is always better to have more surgeons, more medicine and more hospital beds than necessary.
Not to make the assault on Fallujah political, but with the election and everything over (and the fact that citizens were told to leave), can't we just level the place from the air and move on? Doing so before the election may have hurt Bush, but that is obviously not an issue now.
I think Iraq/Allawi and we would be just fine with the smoldering remains and our troops wouldn't have to deal with it.