Medicine, when fully taught, is usually subdivided into several professorships, but this cannot well be without the accessory of an hospital, where the student can have the benefit of attending clinical lectures & of assisting at operations of surgery.
Even back then, the very beginnings of aspects of the University, such as the hospital, already began taking form. This further pays testament to the longevity of the University and the long-term goals of learning in an environment where there are opportunities to study any subject. Aside from the educational purpose, I believe that the hospital serves a practical purpose as well. This is stated in the quote. This effectively added another dimension to the University that would make it more self-contained, making it so students and staff need not leave grounds to receive medical care, thereby creating a greater sense of tight-knit community.