Hospital Procedure for Banned Parents - Questions

I know a couple who was arrested for child abuse a few weeks after their baby was admitted to the hospital (and has been in the hospital ever since). A lot of the information I've been told by the family doesn't make sense to me, and I'm wondering if anyone has any insight into if this is normal hospital procedure when someone is under investigation, etc.

After the baby was admitted (before any arrests) the hospital banned everyone from receiving information on the baby's condition, couldn't even find out if the baby was still alive. That included the parents, grandparents, everyone. My thought was if that's happened, the parents essentially lost custody. But now that the parents are in jail, I'm being told the hospital is calling them in jail for permission to give the baby vaccinations and perform procedures.

Is that the correct process, that the hospital can ban everyone from getting information on the baby's condition but also would need to contact the parents for permission to care for the baby?