As a suggestion you might want to contact the social services dept at the hospital. Many times hospitals make arrangements with local hotels/motels for reduced price stays for situations such as yours. Good luck.
Have you tried Priceline? According to betterbidding, the 3*'s in that area are the Radisson & Holiday Inn. the 2* may be the La Quinta Inn.
posts on better bidding show the Holiday Inn being accepted for ~ $50 / night, which would hit righ at your $400 mark. Of course, I'd start bidding lower. PM me if you need some tips on bidding.
For your first night, Priceline will give you a 3* for $44 pre tax, $57 after tax. You can probably get this for a few bucks cheaper too. I'm bidding for your 2nd block right now.
Do you need a suite for the 8 day trip? Would a room with 2 double beds work? Priceline doesn't guarantee you a double bed room, but I've never had an issue getting a room type request honored. Its a slight gamble, but especially at a Holiday Inn or Radisson, you can usually easily get your room type preference honored.
For your 8 day block, You can get it for $44/night -- came to a few dollars over $400 with tax. It'd be a 3* hotel. Name unknown. check your PM -- don't wanna go back and forth on the forums.
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