I don't know how it works or if every hospital is the same. I do know that my daughter has been hospitalized a few times in the last year. She has gotten two crocheted blankets and a pillowcase. One of the volunteers that came in asked my daughter if she was an only child or if she had brothers and sisters. She told her she had one brother and one sister. They had little hand made bags with a small activity book and a few crayons and fleece blankets for them too. She said that they are all donated from a group of ladies to make sure all the kids there get something nice.
I am thinking each hospital has their own way of doing things. Maybe they have alot of quilts donated to the hospital you are volunteering at. I see your point though. They should change their statement.
As for my daughter, she has Crohns and we will never know how many times she will be hospitalized. Now we bring her "hospital quilt" and pillowcase so others can have them.