I hear she's currently in the hospital.

Literal

She [topic-は] now, hospitalization-during is [hearsay-そうだ].

~そうだ here is the hearsay marker, not the visual-evidential ~そう (which attaches differently and means 'looks like'). The same surface form, two grammatical functions: hearsay attaches to the plain form of verbs/adjectives/copula (入院中だそうだ), while visual evidential attaches to verb stems and adjective stems (倒れそう, 痛そう). Context and attachment point disambiguate. The frame [clause]+そうだ is the standard 'I hear that, apparently' for relayed information.