While definitely not the highlight of the old hospital's history, it is worth noting a particularly awful B-movie extravaganza was filmed in Davis Hospital after it was closed.

While I say it was "particularly awful", it's the kind of awful that B-movies fans appreciate.

Boneyard could have been one of the most significant thing to happen to this little town in recent history. In fact if you take a trip down the main street through the historic part of the downtown, you might even notice someone (probably the city council) has uprooted a piece of the sidewalk near the bank and the sub shop to place a plaque of sorts honoring the films creation in our little town. Many people from here will probably ask; "But should we really be proud of a B-Movie with Phyllis Diller as a mutant demon?". My answer: "Yes, yes we should."

-Some More About The Movie-

There's a tiny blurb about it and the company that produced it here.

Synopsis From Allmovie.com:

This overlooked but entertaining direct-to-video oddity plunges into the nightmarish experiences of a portly, depressed psychic medium (Deborah Rose), whose involvement in a grisly child-murder case leads her and her detective partner (Ed Nelson) to an imposing, fortress-like mortuary. Chen (Robert Yun Ju Ahn), the owner of the funeral home and prime suspect in the case, claims the three mummified corpses in question are not children but ancient demons known as "kyoshi." It seems the little monsters have been around for centuries as a result of an age-old curse and can only be placated with offerings of human flesh with which the mortician has been supplying them his entire life. When Chen is jailed on murder charges, the under-fed ghouls awaken in search of dinner, trapping the staff inside the mortuary walls and munching down on them. The survivors, including Rose and Nelson, use every means at their disposal to combat the demons which have managed to possess the bodies of morgue attendant Mrs. Poopenplatz (Phyllis Diller) and her poodle, mutating them into hideous hell-beasts (not much of a stretch, really). Despite the presence of Diller and some rather outrageous set-pieces, director James Cummins plays the material remarkably straight. Standouts include a good performance by Rose and some truly creepy demon-attacks, marred only slightly by a clunky script and uneven pacing.

 
A copy of the script found inside the hospital.

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