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What this meant was that they'd usually have their own rail lines to ferry crazies from the city, and their own staff housing, food production, plumbing units, etc
This was the entrace to one strip of residential houses which formed a mini street right next to the hospital. There was a laundry room next to this residential complex and across the "street" was another row of houses adjoined to the morgue, records and plumbing etc. So I presume this building was part of the grounds keepers and management style homes.
