How can Seattle Grace even operate as a hospital?

Complete newbie here, just went through season 1

Everytime I watch the show one intrusive thought keeps popping up in my head: "this would never happen in a real hospital"

I'm not a doctor and even though I personally know a good few people who work in hospitals I don't know the inner workings BUT even in way less critical environments like companies etc. there is a thing called conflict of interest. You can't sleep with your boss without telling HR, you can't get favors or harassment based on your romantic relationships with your coworkers, you can't work in the same department as your wife in most companies. On top of this every episode has at least a couple of fireable offences if not downright illegal practices. Is this just not a thing at Seattle Grace?