Yes, npc enemies roaming the streets.
As far as the hospital respawn, that whole concept was badly planned. You can't take iPhone players that are used to getting up after being killed and put them in a server where suddenly you need to pay 1000 a week just to get up after dying.
It may work for pc era, but on iera it is just a cheap trick to get players to buy gralat packs to get it because of how annoying it is to be trying to make money when you go back to the hospital every time you die.