In a hospital environment? All they want is an interactive login? I would say that's pretty hot that they didn't come to your door with torches and pitch forks.
You do sound like you know what you're doing, but how people come to IT and say, "Don't worry about, I know what I'm doing."
I myself work internal IT at a technology company. "IP Engineers" for our production network saw no problem in plugging in "a hub" to our corporate network. They actually had plugged in a home router. They managed to loop the network, flood it with rogue DHCP traffic and open up an unencrypted wireless network. This from people that are paid (a lot more than me) to run a customer facing network.
Long story short, its IT's job to trust no one because most of the time, they're right.