In the aftermath of earthquakes, hospital buildings are expected to remain occupiable to treat the injured. For the purpose, firstly, an appropriate structural system that ensures no or limited structural damage should be provided in such buildings; wall-frames are the recommended structural systems in hospital buildings. Secondly, it is also essential to adequately design wall-frames to help meet the preferred Occupiability seismic performance. The work presented in this paper examines the contributing factors for failure of structural elements in hospital buildings and explores structural configuration and design strategies for mitigating these failures. Nonlinear analyses studies of a typical hospital building in high seismic region in India are carried out to help provide quantitative guidelines for: (a) Structural Plan Density (SPD) of structural walls, and (b) design parameters, for achieving the preferred performance. Displacement-based limit state of structural damage adopted from traditional displacement demand estimation rules is proposed. Lateral stiffness, strength, and ductility are evaluated of study buildings, and efficacy of results obtained from nonlinear static analyses confirmed by performing nonlinear time history analyses in commercial software PERFORM 3D. Results demonstrate inadequacy of moment frame structural system in hospital buildings under strong earthquake shaking, identifies optimum overall SPD of structural walls and relative column-to-beam strength ratio of frame members, required to achieve Occupiability. A minimum 3% SPD of structural walls in Wall – Special Moment Resisting Frame (WSMRF), 4% SPD in Wall – Ordinary moment resisting frame (WOMRF) hospital buildings, and a minimum column-to-beam strength ratio (CBSR) of 2 is required in hospital buildings to attain Occupiability performance.