The hospital is located behind the stretch of shops and it is next the Pretty Kitty spa. The exterior features a sheltered area with the traditional cross. Inside there are 4 rooms: one is where the patient can sit (actually in the game there is a bed where they can lie down) and the doctor will know what is the prescribed step to feel them well again; a room where zombie villagers are turned into villagers again; a room where you can relax when you are set on fire or burns; and a brewing stand with the doctor's medical wear.
The hospital is made almost completely out of nether quartz blocks, pillars, and chiseled quartz. It features a red cross on the entrance to mark that it is a hospital.
The hall floor is made out of red wool. Each of the rooms has a different floor. The floors are blue, green, cyan and one room features a quartz pattern, courtesy of Lee.
The rooms in the hospital are:
Feeling Fab Med Lab - This is the room where all the medicine is made. This is the room which has the quartz floor. There are brewing stands, a cauldron, a crafting table and a chest with potion ingredients. Stampy also keeps his lab coat in there.
Can't Be Missed Therapist- This is the room where you can 'talk about your feelings'. It has a cyan floor. It has a bed (meant to represent a chaise lounge) and a 'chair' in it. The walls are decorated with large paintings.
Not All Bad Zombie Lab - This is the room where zombie villagers are cured. It has a green floor. A glass wall separates the 'containment' area from the doctors. Stampy built a piston door to trap the zombie and a simple redstone line so that the door closes by a lever, the zombie would be splashed with a weakness potion. A chest in the room contains golden apples.
Feeling Nice Healing Ice- This a room full of ice and water. It is meant to cure burns. Stampy recommends taking a trip to the room after going to the Nether. As you can tell, it is very cold.
Lee was the first one to be 'treated' in the Can't Be Missed TheraphistRoom by Doctor Stampy. He was prescribed plenty of cake.
Stampy found a zombie villager in the Pick-A-Pet Pet Shop in Googlie Goods. The zombie was being cured but however, Stampy and Lee were too far away and the zombie/villager disappeared (probably despawned).