What is the something else? There is an extensive tunnel network that likely allows insurgents to travel from the hospital to elsewhere. So you can't lay siege to it.
You could send troops in, but now you're in disadvantaged close quarters combat, which is horrific and guaranteed to get many of your troops killed.
The only reasonable strategy is to bomb the hospital. It saves the loves of your troops. Will there be civilian casualties? Yes. Is that preferred to losing your own citizens? Absolutely.
I don't think you're wrong, but I think its wrong when the response is "lets bomb them" instead of figuring out something else.