You're right about the 2nd half of the titles. Very badly done.
Or if that's the look they were going for, then I'd say it was very well done. I mean, if they wanted it to look like a bad cheapo hospital series, I'd say they were very succesful!
Knowing Von Trier, I'd say the look is very intentional and he probably wanted it to bring in some shock effect to the intro. I think he wanted to play with the audience a bit. Let the audience know that they can expect almost anything from now on. And then Von Trier appears at the end of each episode in this sort of "Alfred Hitchcock Presents" kind of way to comment the story to really make sure you wouldn't think it's any old hospital series.