I think the blog post is fairly complete. I don't have anything to add. Assuming that the sample size for each hospital is large, you don't need to "simulate the confidence limits." Just use the normal approximation to the binomial. For other posts on the funnel plot, see the "Trackback" section at the bottom of the blog post. In particular, this post Funnel plots for proportions - The DO Loop seems relevant, although it uses an adjustment for the binomial limits, rather than the simpler normal limits.
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