Translation:The hospital is over there.
Conceptually there is only one meaning, which is something we are facing. Just in English there are different phrases to interpret that situation and each of those phrases has their own conceptual meaning. So "over there" sometimes should be translated to あそこ rather than 向こう.
Ah! This is one of the things I love about Japanese. When people say that Japanese is a hard language, you can just smile knowingly at them.
We have a bunch of words that follow the same pattern. Let’s see if you can figure it out.
ここ here (in other words, something that is close to me)
そこ there (in other words, something that is close to you, and I am talking to you)
あそこ way over there (in other words, it’s not close to either of us)
これ this (as a noun) (in other words, it’s probably in my hand or very close to me)
それ that (as a noun) (it’s close to you, and I’m talking to you)
あれ that over there (as a noun) (it’s close to neither of us)
どれ Which one?
この this (as an adjective)
その that (as an adjective)
あの that over there (as an adjective)
こちら this way
あちら (guess again)
どちら (and what do you think this is?)
Okay, take a moment. What’s the pattern?
I love this that there is a recognizable pattern. As a matter of fact, if you are talking about people, you will use こなた (the person standing near you), そなた (the person standing near the guy you are talking to – or even sometimes used for the person you are talking to), どなた (a very polite way to say “Who?”) and… drumroll, please, あなた, which technically means “That person way over there who is neither close to you nor to me.” For reasons of keeping distance, this was eventually co-opted to do double-duty as “you,” but now it is closer in meaning to “you, my darling.” That’s another discussion which is also cool.
Whoops, I digress. To answer your question, むこうis merely a fixed location. It is not relevant to where you or the person you are speaking to is standing.
Now that you know the pattern, you can look for other words that follow it! Difficult language, indeed. (snicker) Japanese is so amazingly logical.
Hope this helps!
I think "over there" is a so-so translation for 向こう, and really only works in this out-of-context situation. Personally, I can't think of a situation where you'd translate "over there" as 向こう. The English sentence loses the idea that the bank is across from something. In context, you'd probably translate it as, "The bank is across from/opposite it/us/you." I understand why they didn't use, "The bank is opposite." It sounds odd in English. They should at least accept it, though; it carries the meaning more completely.