Why do many cities have medical districts where several major hospitals are located close to one another?
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Smokeyrow hits it on the head that a medical district creates a mutually benefited area. Along with the hospitals there will be a lot of support services and doctor’s offices. You will have oxygen companies, medical supply houses, walk-in clinics, maybe outside ambulance services and a lot more. The city or county may offer tax breaks to help these similar business group together. Transportation services such as buses, trollys or similar will have more drop off spots to facilitate the increased traffic. Cities have found that concentration of services like this work well together.
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