Parents were asked by the doctor to take the camera down.

I know that there have been cases where cameras have been placed in childrens' rooms when hospital staff or police have suspected child abuse (by the parents) in cases of unexplained illness or injury to a child. The camera is there to catch the parent or caregiver in the act of abuse, so they can be charged.

And although the purpose of this was not to catch neglect or abuse on the part of the hospital staff, I don't think this is a bad idea at all. If my child was in the hospital, and I was unable to be there with him or her constantly, (as would most likely be the case, as I have more than one child), I'd love to know that everything was being filmed. I'd also be happy for the staff of the hospital to be aware that everything was being filmed because I think it would raise the standard of care.
And it's not as if any of of the staffs' personal privacy was being infringed upon- they would simply be being filmed doing what they were supposed to be doing whether anyone was watching or not.

I've often said that if I was in the hospital, I'd like various family members (I come from a medical family) to be present with me to monitor my care. My sister who is an ICU charge nurse has told me she thinks it is a good idea, especially if the patient has little knowledge of medical procedures, or feels uncomfortable being assertive. A camera in my hospital room would definitely make me feel safer overall and more confident that carelessness or mistakes would be less likely to be made.

I agree! A camera in a patient's room would not only monitor but also protect staff personnel from accusations and malpractice suits that are so prevalent these days.

Our town had a terrible shake up in one of our children's hospital permanent care facilities where an employe (Radiology tech) abused and molested helpless children for years and years.

Cameras installed in every room will be the future, and I am all for it!

That's an excellent idea.