Germs Nerawareta Machi

Germs Nerawareta Machi (～狙われた街～) which translate to "Germs: the Targeted Town" is a first-person open world, survival-horror/adventure game devlopped by KAJ for the PlayStation in 1999.
Plot.
The protagonist is a newspaper reporter who has returned to his hometown in order to investigate mysterious occurrences regarding strange mutated creatures appearing in the region.
Gameplay.
The game is actually an open world, you can navigate by walking, driving a car, or taking a bus. Though much of the game consists of exploring and solving puzzles. During combat, if the players loses, they don't die, but rather end up infected, they have to rush to the hospital in order to cure their infection.
The game has an unsettling mix of science-fiction, body-horror and surrealism, possibly taking influences from the films of "David Cronenberg", "David Lynch" and "Shin'ya Tsukamoto" as well as some of the 1950's and 1960's American science-fiction flicks for the setting and the story.