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It is however a waiting game on Underlook Hotel since you'll constantly be getting negative rep reviews on the hotel itself that will overlap with you.
I was making money for a while and now even after scaling back on rooms and doctors I'm loosing my shirt.
Yes, it's part of the mechanics of the level. Instead, you make money from doing the requested side tasks (like training staff, unblocking toilets, etc). There's another hospital with similar mechanics later on.
On the flip side, the better the cure rate you have in three-month increments, the lower you staff bills are (the health service pays a percentage of them). So once your hospital is really sound, you can end up having the health service cover virtually all of your staff bills.
Oh cool, thanks so much for your help! I kinda figured it worked that way, but it was odd seeing x doctor making 0 money for the hospital over 7 years.