As regards this "proposal," for a 10,000 ton hospital ship, I believe the key statement is this:
So you have a politician in Taiwan's opposition party "suggesting," Taiwan should build a humanitarian base on one of its islands and a humanitarian hospital ship to operate from it...all not under the control of Taiwan's Navy or any other Taiwan military.
I simply cannot take such a suggestion seriously when it comes to "military," news from Taiwan. She is not even suggesting it be military. Good luck on her getting any commercial or private funding for such a venture except for maybe Green Peace.
Actually you are not too far off. Taiwan's DDP's philosophy is pretty much aligned with the Green Peace. DDP is an anti-nuclear, environmental conscious green party. Even their party flag is green.
In 2007, under DDP President Chen's government (2000-2008), the entire Pratas Island Atoll was turned into a national marine park. Pratas Island is strategically situated at the mouth of Hong Kong, Taiwan Strait and Luzon Strait. Furthermore, according to maps posted on the internet, Pratas Island is sitting on top of guaranteed huge deposit of gas and oil field. In theory, turning Pratas Atoll into a national park is to make it less a military target ,and at the same time, to gain more international recognitions.
DDP was basically in the process of renouncing the claim to Diaoyu/Senkaku Islands and demilitarizing Itu Aba/Taiping Island to appease neighboring countries in the hope of gaining international recognitions and supports. In 2000, ROC marine corps on Taiping Island was replaced with Coast Guards. After 2001 Hainan Island incident of air collision between US Navy EP-3E ARIES II signal plane and PLAN J-8II interceptor fighter jet, US pressured President Chen into building an airstrip and an airport in 2007 so that Hercules transporter airplane can land. ROCN deep sea divers were trained by the US counterpart in coordinated search and rescue to provide emergency support to US airmen or submarine crews. Again in 2013, US pressured the current Ma's government into building a 3000-ton ship capacity pier on Taiping Island.
Since PRC considered Taiping Island as Chinese territory, it won't attack the island unless it is invaded by foreign force. Vietnam won't attack the island because it is afraid of PLA's retaliation and as an excuse to capture all Vietnam occupied islands in the Spratlys. Same theory goes with Philippines plus Filipino military lacks the capability to attack Taiping Island. So the most prized natural island in the Spratyls is actually the safest place in the SCS.
Also Taiping Island has lost its significance to PRC since their massive artificial islands creation unless using it in the international legal battle with Philippines and Vietnam to claim EEZ. Philippines has denounced Taiping Island as a rock rather than a habitable island in hoping to win the arbitration case under UNCLOS against China.
Few months ago, an American scholar suggested Taiwan of making Taiping Island neutral by handing over it to a neutral international body (aka US allies). Most people believe the minute Taiwanese government renounced the sovereignty over Taiping Island, PRC would invade it. So DDP's idea of turning the island into an international rescue base without loosing sovereignty to it is probably a better idea of appeasing to the US allies thereby gaining more international recognitions without inflaming PRC.
Furthermore, with estimated 1/4 of world submarines lurking underneath SCS, submarines collision is a very likely scenario. Who knows, maybe DDP's leader Tsai does have the far sight - there might be an usage for a hospital ship around Taiping Island after all. Maybe and just maybe, this is another US idea....