Yes, or maybe. This part of the movie was probably the worst adaption of the source material in the movie. In the comics, Wade and "Worm" Cunningham are sent to the Hospice after failing to develop useful superpowers in the Weapon X program. They are sent there to die peacefully, and away from the public eye, a way for the government to keep things under wraps. But a Doctor there, Killebrew, along with The Attending (better known as Francis) has illegally decided to use the patients as guinea pigs. They were not all terminal, just failed projects, and they were not mutants. And they did it for a variety of reasons, for God or Country (Most of Alpha Flight), a sense of civic duty, for super powers, for financial gain, or because they were sadists (Sabertooth, Ajax).
The movie changed this to Ajax being the one in charge, attempting to force dormant mutant powers to activate in desperate soldiers of fortune (mercenaries). This is done through a combination of drugs, a stressful environment, and life endangering situations. While it's true that mutant powers vary by a great deal
- the powers are a mutation meant to enhance the survival of the host
- there are some mutant power sets that are fairly common (telepaths, healers, super strength, speedsters, shape shifters)
- Francis' end goal doesn't care what the results are as long as he gets a super soldier.
Given that mutant powers are often a result of the environment that the host is in, as a way to protect the host, if you put multiple people in the same life or death situations, the results should be the same. Anyone that doesn't heal or produce a power is just written off as another reject corpse. Anyone who produces a useful (to Francis) power is supposed to be brainwashed and used as a weapon as Francis or his customers see fit, until they die in a fight or from the disease. Those that get cured of their sickness are just a nice bonus. They even heavily implied that Angeldust was brainwashed by Francis.
Francis was right about to write off Wade for dead/useless when he put him in the oxygen tank, as a final resort to force a mutant change. He had no moral objection to using people or taking their lives for his financial gain.
Also, we don't explicitly know if everyone was there because of fatal diseases. Just that Mr. Pedophile targeted two people that were sick, Wade and another unnamed person.