Nope, not fake news or taken out of context, at least as far as I know. I have quite a few friends and a few relatives that are former military. The military has very strict and explicit protocols. When setting up any field operation a security team is sent in first, whether it is really needed or not (as in this case). Their job is to recon (reconnoiter) the area, put security in place and set up comms (communications). Once that is set up, they send in a logistical team who say "we need" and then all that gear is loaded into planes, trucks and ships. (They already know what's needed, but protocols are inviolable in the military.) Since a health emergency has been declared in NYC Trump has activated the emergency medical units of the Army, Navy and National Guard. They are going to "convert" hotels, schools and other buildings into medical facilities. One friend of mine said that schools would actually be preferable, as they don't have carpeting and the like, having hard walls and floors that are much easier to clean. I would not be surprised to see Navy medical ships pulling along side NYC docking terminals in the near future. My understanding is that these converted facilities will handle the usual medical emergencies - broken bones, birthing babies, etc., freeing up the hospitals and their personel to exclusively handle COVID-19 cases - and some will be used as facilities for those who are out of danger, no longer needing critical care but still recovering from Corona Virus.
This is also going to happen - or is already happening - in LA and Seattle, and then branch out from there.
I could have this all wrong, but this is what has been explained to me.