My home has the same "industrial" baseboards. Ahem!
I don't know of anyone who has brought such bedding to any hospital setting.
The floor is not "decorative". For the practicality of cleaning and the appearance of cleanliness, white linoleum or tile is the norm in hospitals.
Spartan walls are common even in many homes.
The only really weird thing to me is the curtains. Hard to judge what material they are, but to have them on adjoining walls seems odd.
Can you show other pics, or are we forced to speculate forever here? Who took them, by the way? Perhaps the photographer could help us out more than our creative thinking.