A better way to fight. Sneak the whole team onto the balcony above. They shoot or cast spells downward particular AOE stuff. You will get a whole bunch of free round where you can pick off everyone eventually or at least weaken them considerably before they can fight back.

You can save the Distressed patient, I ended up trying to convince the nurses to fight but failed and ended up in the encounter fighting them all. After killing them, I was able to release the distressed patient. There was no extra dialogue scene, he just ran away screaming in pain. Not sure if there was something specific that happened to allow it?