That's not entirely true. In many areas of the CBD, the front facade of a building has to be at least 60% transparent, and the back has to be at least 40 percent transparent. The code does not dictate what should go on on the ground floor of anything.
The JW meets the requirements, and I'd bet that the zoning standards are different on the hill. And contrary to popular belief, you CAN build a nice looking hospital that isn't a bunker. Look at the way the Heart Center meets the street. Why can't everyone do that?
Sure, its not retail, but no one expects to see a Whole Foods or a GAP on the ground floor of a hospital. All we're asking for are some G.D. windows!