Israeli troops stormed the main hospital in southern Gaza, causing chaos for hundreds of staff and patients.
Health officials reported on Friday that five people in intensive care died after their oxygen was cut off due to the raid.
The Israelis believed that the remains of hostages abducted by Hamas might be in the facility, prompting the raid.
The Nasser Hospital in Khan Younis had been besieged by Israeli troops for nearly a week, with those inside facing heavy fire and depleting supplies of food, water and other necessities.
Prior to the hospital being seized, Israeli fire had already killed one patient and injured six others.
Israeli Prime Minister Benjamin Netanyahu claimed that if other countries recognize a Palestinian state, it would give a "reward to terrorism," and has repeatedly rejected the creation of a Palestinian state.
Netanyahu has vowed to continue the offensive and expand it to the Gaza city of Rafah, near Egypt, until Hamas is destroyed and scores of hostages taken during the group's Oct. 7 attack are freed.
In their phone call, Biden again cautioned Netanyahu against moving forward with a military operation in Rafah before coming up with a "credible and executable plan" to ensure the safety of Palestinian civilians, the White House said.
With the conflict showing no sign of ending, the risk of a broader conflict grew as Israel and Lebanon's Hezbollah group had the deadliest exchange of fire along the border since the start of the Israel-Hamas war.
Israel launched airstrikes into southern Lebanon for a second day on Thursday after killing 10 civilians and three Hezbollah members on Wednesday in response to a rocket attack that killed an Israeli soldier and wounded several others.
Nasser Hospital was the latest in a series of hospitals Israeli forces have besieged and stormed during the war, claiming Hamas was using them for military purposes.
The assaults have gutted Gaza's health sector as it struggles to treat a constant stream of people wounded in daily Israeli bombardments.
Israeli troops, tanks and snipers have surrounded Nasser Hospital for at least a week, with food, water and supplies inside dwindling and Israeli fire from outside killing several people inside, according to health officials.
Israeli troops moved into the hospital Thursday after the military said it had "credible intelligence" that Hamas had held hostages there and that the hostages' remains might still be inside.
Rear Adm. Daniel Hagari, the chief military spokesperson, said forces were conducting a "precise and limited" operation there and would not forcibly evacuate medics or patients. Later Thursday, Hagari said troops were still searching the hospital. He claimed dozens of Hamas members were captured from the hospital grounds, including three who participated in the Oct. 7 attack. He also alleged that Israeli troops found grenades and mortar shells and that Israeli radar determined that Hamas fired mortars from the hospital grounds a month ago.
The Israeli claims could not be independently confirmed.
A released hostage told The Associated Press (AP) last month that she and over two dozen other captives had been held in Nasser Hospital.
International law prohibits the targeting of medical facilities, though they can lose those protections if they are used for military purposes.
Even then, Israel must take precautions and follow the principles of proportionality, the U.N. Human Rights Office said, adding that "as the occupying power, Israel must maintain medical facilities."
As they searched, troops ordered the more than 460 staff, patients and their relatives to move into an older building in the compound that isn't equipped to treat patients, the Gaza Health Ministry said.
They were "in harsh conditions with no food or baby formula" and severe water shortages, it said.
Five patients in the intensive care unit died early Friday because electricity was cut, stopping oxygen supplies for them, the ministry said.
It had earlier warned that six patients in the ICU and three infants in incubators were in danger because fuel for generators was on the verge of running out.
"The Israeli occupation is responsible for the lives of patients and staff as the compound now is under its full control," the ministry said.
Raed Abed, a wounded patient who was among those who left the hospital Wednesday, said days of siege had left the facility with no water or food, "Garbage is everywhere. Sewage has flooded the emergency ward."
Still suffering from a severe stomach wound, Abed said he and others waited outside for hours as Israeli troops made those leaving pass by five at a time, arresting some and making them strip to their underwear.
Finally, he walked for a while until he reached the border town of Rafah, where he was put in a hospital.
Lying in a bed there, he wheezed in pain from his wound as he spoke.