The entry depicts Santa Claus and Mrs. Claus sunbathing on a sandy beach while Rudolph and an elf swim nearby.
"Not only do our employees know how to take care of patients, but they are creative and know how to decorate gingerbread houses," said Janelle Patton, administrative director at the hospital. "What they come up with year to year amazes me."
Other entries this year included a backyard tree-house on stilts surrounded by a gingerbread man fence, a zebra-striped cottage with stacked cookie Christmas trees in the yard and a teapot.
"Each time I look at these eight entries, I find something new," Patton said. "One has a candy corn campfire, and another has Cheese Nips for windows."
"This is part of an ongoing tradition for the hospital," Patton said. "We started by decorating doors, then decorated wreaths. Now, for the second year, we have decorated gingerbread houses. It's something fun for the employees to do during the holidays."
Each department has about two weeks to work on their entry.
Winner of this year's contest will receive the traveling trophy and a pizza party.
The gingerbread village will be on display in the hospital lobby during regular business hours from 8 a.m. to 7 p.m. throughout the rest of the week. The public is invited to view this year's entries.