Hi Mel,  about 7 months into my first pregnancy my OB/GYN did a blood test and found low hemoglobin levels (about 6-7 at that stage).  I knew going in that I had thal trait, but I didn't know it would have such an effect on me during pregnancy (and obviously neither did my doctor, because she initially sent me home with the same advice you got---take 2 iron pills instead of one).  To keep my story short, after consulting with specialists it turned out that I needed to have blood transfusions before both deliveries (actually the transfusions occurred about 6 weeks prior to my due dates).  The OB/GYN the second time (I changed doctors between the two pregnancies) explained to me that the reason for this was that if they had to do an emergency C-section my low counts would be a problem in receiving anesthesia.  Other than the required transfusions, I needed nothing special and gave birth to two healthy children (both natural deliveries).  I can't imagine why the hospital would be reluctant to handle the birth of your child, other than they are unfamiliar with Thal trait and are operating out of ignorance.  Try consulting a hemotologist, see if transfusions might be needed for you as well,  and maybe the hematologist can explain the risks (and lack of them) to the hospital.  Best of luck!