ulrichw said:IMO you're more on the right track than many other posters in this thread.
The reason the incident is so important is because of who raised this issue: Betsy Andreu.
The hospital incident was the prime incident that pitted Lance against the Andreus and v.v. (although there were of course other reasons, too). For Betsy, closure can only come in the form of an admission by Lance that the events happened the way she described.
I personally think Lance came about as close to admitting those events as he could without coming right out and saying it. There's no doubt in my mind that he chose to protect someone (probably primarily himself, perhaps other people involved) by not admitting the incidents outright. I actually felt like he was trying to find a way to say that Betsy was right, without saying something that could later be used against him in legal proceedings (of course, I may be giving him too much credit).
He is only protecting himself for perjury charges.