There are a million reasons why this is the case on any large-scale public project, and it's very difficult to discern which ones are operative without having direct inside knowledge of the specific instance. In public infrastructure projects, sometimes it's bureaucratic muscle memory; sometimes it's a lack of vision; sometimes it's a poorly written RFQ or RFP; sometimes it's a flawed tendering process or evaluation criteria; sometimes it's awarding a contract to the wrong bidder -- and those are all separate instances from even have a design to critique!
There are two key things to understand here. First, this is a false choice; functionality and beauty are not mutually exclusive (as is demonstrated by literally every building in the world that is both functional and beautiful). Second, and more interestingly, the end function of a healthcare building is to create an environment that leads to positive health outcomes, and what more enlightened administrators, purse string-holders, and designers understand is that there seems to be more of a link between the two than longstanding orthodoxies have held.
That guy is totally wrong. Canada's Wonderland has more land than it will ever need, tied up in the ridiculously large surface parking lot, which could gradually be put into garages whenever they wanted to build onto it, if they even need garages. (Now that the subway comes close to the area, bus access to Wonderworld should just be improved.) The land to the north is fine as a healthcare precinct.
That's good. The person who created the video obviously overlooked the potential of converting some of the parking space to parking garages and also did not consider Viva Silver, which would provide easy access between Wonderland (and the hospital) and VMC station via Vaughan Mills.