In the late 60's & early 70's there was a push to make it possible for the rescue squads to talk directly to the ERs rather than through dispatch.
The H.E.A.R. system was developed to meet that need.
Typically, there were one or more 'Med' repeaters installed in an area with wireline connections to remote units in the hospitals. Because there were often several hospitals in an area, it was necessary to implement a selective calling system so the ER staff didn't have to monitor the channel.
Hence, the encoders in the squads and decoders in the remote units at the hospitals.
Here is the Motorola rotary encoder for use with Motrac radios:
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