Thalidomide became an over-the-counter drug in Germany around 1960 and could be bought without a prescription. Shortly after the drug was sold, in Germany, between 5,000 and 7,000 infants were born with phocomelia. Merely 40% of these children survived.
Actress Sally Kellerman portrayed her in the Robert Altman film adaptation (where the character was renamed O'Houlihan; however, like many of the M*A*S*H* characters, Hot Lips is probably best known from the television series, where her part was played by Loretta Swit.
Hotch (Thomas Gibson) removes Morgan from the case because it's too personal and he doesn't want Morgan's family to suffer the same fate his did after his tango with The Reaper (RIP Haley). Obviously, that doesn't sit well with Morgan.