You would only be able to use this in the group selection formula area, which you indicated you wanted to use in the heading of your post, and if you had already created a group on {Command.SiteName}. Go to report->edit selection formula->GROUP and enter the formula there.
If this doesn't work, then instead of saying that it doesn't work, please provide the error message that you get or explain the results you get.
Again, why not create a record selection formula:
{Command.SiteName} in ["DC Hospital","NYC Hospital"]
You could put this in the regular record selection formula area. Or if you want the ability to select sitenames each time you run the report, use a parameter instead.
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