According to this site

"Thailand has a strong educational and health care system."

Does any one know if there are proper hospitals in Hua-Hin or surroundings?

Move to Health where it should get more responses

NO, unless the long-awaited new hospital has opened

There's currently 2 hospitals in HH, the Sao Paulo Hospital and the Hua Hin Hospital.

Reports I've read on other forums indicate that SP Hospital is not up to scratch (in fact I've read of more than a few unsatisfactory experiences there). HH Hospital is considered a better alternative (apparently the Thai monarch uses this hospital sometimes). However, residents I have spoken with suggest that for anything "serious" you should do the 2 hour drive to Bangkok to Bumrungrad or Samitivej Hospitals for better care.

I would tend to agree with the above.

In an emergency where you are too ill to delay care until you reach Bangkok, go to the Provincial Hospital in Petchaburi town, awhich is maybe 40 km (Hua Hin residents please correct me if needed) to the north on the way to Bangkok. The Provincial hospital in Prachueb kiri Khan also an option but further away.

Provincial hospitals are also a viable (and certainly inexpensive) source of non-emergency care provided what you need is not highly specialized, you speak Thai or can bring a Thai speaker with you and you don't mind a fair amount of in itial red tape and long waits (as with any government health service).