Doctor and hospital costs abroad are not covered by the travel insurance. The "advanced money" for doctor and hospital costs (usually CHF 5,000) mentioned in the travel insurance have to be paid back to the insurance company.
For holidays within Europe, the compulsory basic insurance from the health insurance is sufficient. Important: you should always carry your "European health insurance card" on you so that the bill does not have to be paid on the spot.
The compulsory basic insurance and the accident insurance (UVG/SUVA), however, only cover the double amount of expenses of what the treatment by a doctor/hospital would have cost in the canton of residence. Therefore, it is recommended to take out a supplementary insurance for countries outside of Europe (e.g.: USA, Japan, Australia), as treatment in these countries can get quite expensive.
Tip: find out about existing benefits and the possibilities of supplementary insurances from your health insurance before your trip.