In my hometown there are some lovely condo and townhomeneighborhoods surrounding our hospital.They are fairly new(less than 20 years old) and beautifully kept.Crime is low.Everything you could want or need -- groceries, pharmacies, banks, restaurants, etc... is within walking distance.So why are the prices so low?Neighborhoods a little farther away are twice as much.Is it being close to a hospital?
This is one of the few areas that have a busline, probably because there is some colleges here too. The hospital and surrounding neighborhoods were forest, it is one of the prettiest, most prosperous areas in my hometown.

it depends on public transportation as well

what is the area? are there many jobs?

Location. Location. Location.Supply. Supply. Supply.

There r a number of possibilities. The real estate could have been developed under various programs for rehabbing a depressed area (what was it like 20 or so years ago?). Or as subsidized housing for low-income people like the low-level hospital workers. Or the hospital may have owned that land & developed it for low-cost housing for its nursing school students, interns, etc.

And of course, land right around a hospital is generally less desirable & less expensive than land a ways away. After all, they have ambulances with sirens wailing coming in day & night.

It is rather incredible how many hospitals r in run-down, depressed neighborhoods or outright slums. Until u realize the hospitals have been there for decades & the desirable suburbs keep moving further out as population increases. The areas near hospitals keep deteriorating until someone comes in with redevelopment money.