Lynch, TTBOMK, had privileges at MNMC (I am not sure if he had those from "Day 1" when he started as the Athletics Medical guy - not sure how long that process typically takes - but he had them before he left/was fired). Must not have been much of a concern, as Joyner would have had to be aware (and has the professional background that is fairly unique in that regard) when he hired him.
The bigger issue wrt location is that MNMC is a regional hospital (a fine enough hospital for a small town, IM personal O as a local resident) but doesn't have the facilities or depth of expertise to be a preferred location for more complex cases - and those are sent to Hershey, or elsewhere (regardless of the particular identity of the primary physician).
Fortunately, cases that complex would not be common - but, yes, it would be somewhat less convenient than having a more advanced facility located right in State College.
I don't know if that was an issue the defense tried to present at trial (I wasn't in the courtroom), but if it was, I can only assume the jury didn't find it a particularly compelling issue - or, at a minimum, that the evidence presented did not support that as a contention for why Lynch was let go.