In my view they sure are... why would a company offer you an even further discount for something outside their control. They're running a business not a charity. So they have rooms available, do you expect them to give them to you for free?
Your lack of budget or insurance is your problem, and yours alone. And did you also ask the doctor and the hospital for a discount?

In circumstances like these it's to be expected that a hotel offers you great service, not a steep discount.