Thanks Ant for your reply. I get it now.
REgarding the last point, I would have been in the hospital is, I think, a third conditional
For example,
If you hadn't stopped at the grocery store, we wouldn't have missed our flight and would be in Italy now (my preference - 2nd conditional), would have arrived in Italy now( 3rd) , would have been in Italy (3rd I guess but somehow lacking something :) )
What do you think?
(Edit, let's push the Italy event back in time by 10 years, the 2nd condition will fail because most likely it was just a vacation so you would have returned to yoru home country. In this case, the last choice stands out better, I think. On second thought, it would require changing the preposition from 'in' to 'to' or changing the verb to 'visited')
(Edit 2: I would have been in the hospital means "he would have been hospitalized and discharged" right?. A little help here. I'm not good at conditionals. I always struggle with them :( )