It the policy were based on health principles, then it certainly would not exempt current employees. Clearly, the hospital doesn't care that much about the health principle, since it will continue to employ smokers with no questions asked.

By opposing the classification of e-cigarettes as tobacco products, the e-cigarette associations have been everything they can to avoid regulations that treat these products in the same way. The reason is simple: such regulations would give cigarettes a huge competitive advantage in the market place. Laws that categorize e-cigarettes the same way as tobacco products are essentially protective legislation for tobacco cigarettes. By fighting such a classification, e-cigarette associations are doing what they can to reject the idea of this protective legislation so that they can gain the upper hand on cigarettes and eventually, make these products obsolete.

The rest of the story is nicely summarized by Jacob Sullum in a Reason.com . He concludes:

The Truth

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