The surgical ward of the Nasser Hospital is in ruins.
An Israeli missile hit the ward, on an upstairs floor of the building, on Sunday night, killing two people and wounding others.
Patient Mohammed Jihad al Rawyda was sitting with friends when the missile hit.
"Suddenly, they were flying towards me," he told the ABC.
"The blast was so powerful that I saw my friend, who is a big man, flying from one place to the other.
"Can you imagine seeing a big man who is very strong flying in front of you. It is so crazy and unbelievable."
IDF says Hamas figure 'was eliminated'
The Israeli military said the strike targeted Ismail Barhoum, a senior member of the political wing of the militant group Hamas.
"Barhoum was a key figure in Hamas' political bureau and was actively involved in the military decision-making process that directly impacted Hamas' operations," the Israel Defense Forces said in a statement.
"Barhoum was eliminated while he was operating within the Nasser Hospital, while cynically endangering the civilian population in the area."
Medical staff said Barhoum was being treated at the hospital for injuries, not working there.
The IDF said it sought to minimise civilian casualties from the strike.
Hospital was 'already in a dire situation'
The director of the hospital, Marwan El Hamss, said Israel had caused extensive damage to the ward and affected the hospital's already-reduced functioning.
"The fact that this section is shut will impact negatively on the medical activity and on the hospital's capacity," he said.
"We are already in a dire situation. The medical situation is very bad.
"We had already a shortage of oxygen as Israel had hit the oxygen department of the hospital. We were struggling for drugs and now the storage has been destroyed.
"It is obvious that the Israelis are destroying the healthcare sector whether it is at a small or large scale."
Dr El Hamms said patients and staff remained terrified.
"Yesterday, the medical staff was terrorised and scared because we thought Israelis will kill everybody," he said.
"We stormed the ward to rescue the ones who were trapped in this section. Even the first responders were afraid to rescue people.
"We feared that Israelis would launch a second attack. We have no clue about what they do. We did not know that it was one strike. As medical staff, we never know what to expect from the Israelis."
The International Committee of the Red Cross (ICRC) said its office in Rafah in southern Gaza was hit by an explosive projectile on Monday.
"Fortunately, no staff were injured in this incident, but this has a direct impact on the ICRC's ability to operate. The ICRC strongly decries the attack against its premises," the humanitarian agency said in a statement.
Paramedics missing
The ICRC said it was also worried about paramedics from the Palestinian Red Crescent Society, who have not been heard from since Sunday when they entered an area of Rafah that was newly occupied by Israeli troops.
The United Nations has announced it is withdrawing some staff from Gaza, after one worker was killed and six wounded last week.
The UN said it believed they were killed by Israeli tank fire.
Israeli initially denied responsibility.
"In the past week, Israel carried out devastating strikes on Gaza, claiming the lives of hundreds of civilians, including United Nations personnel, with no humanitarian aid being allowed to enter the Strip since early March," Stéphane Dujarric, spokesman for the secretary-general, said in a statement.
"As a result, the secretary-general has taken the difficult decision to reduce the organisation's footprint in Gaza, even as humanitarian needs soar and our concern over the protection of civilians intensifies."
Israeli and US media reports have suggested Israel is preparing for a major offensive in Gaza, with the defence minister last week saying he had ordered troops to seize and occupy land, which would be annexed if Hamas did not release hostages.
Israeli Foreign Minister Gideon Saar told reporters in Jerusalem the government was interested in a diplomatic solution but is meanwhile preparing to continue its military campaign.
"The war can end tomorrow, with releasing our hostages, demilitarisation of Gaza and the withdrawal of the armed Hamas and Islamic Jihad forces from there," he said.
"War is not an ideology. We would be happy and we will be happy to achieve our aims by diplomatic means. But if that is not possible we have no choice but continuing our military efforts."
