That's a gracious reading. If there had been an absolute need for more beds, plans would have been developed to make use of the space.
Instead, it might imply hospitals were dealing with increased load, perhaps needing more beds than they had but not so much of an increased load to justify implementing and following a plan to use these facilities.
Instead, it might imply hospitals were dealing with increased load, perhaps needing more beds than they had but not so much of an increased load to justify implementing and following a plan to use these facilities.