Ah-ha! Those two can be misheared even among the natives. But the pronunciation is different: Hospital: 病院/びょういん: byo-in Beauty salon: 美容院/びよういん: bi-youin or bi-yo-in Open the site below (a google translation page) and click the speaker mark at the Japanese window to hear it, pleas; https://translate.google.com/#en/ja/a%20hospital%20and%20a%20beauty%20salon If talked fast, the two can be easily misheard.

No, they don't though ther are very similar in pronunciation but with kanji, they are totally different. Hospital = 病院[びょういん] (byouin) *written with ょ, the small one Beauty salon = 美容院[びよういん] (biyouin) I hope this helps you.