Doc Morbid is the odd, unfriendly doctor in Junktown. Despite his attitude and two bodyguards, Flash and Cougar, he is a competent physician and, from time to time, teaches budding young doctors medicine (for instance, Razlo from Shady Sands is one such student.)
Apart from providing medical services to the people of his fine town, the doctor is also an entrepreneur. In his basement he operates an underground butcher shop, where human body parts are prepared by him and his dwarf assistant Gretch for shipment to Iguana Bob in the Hub for the production of iguana bits.
When heading to Junktown on a caravan route, the caravan driver sometimes says "Hear there's an odd doctor out that way. Deals in the dead they say." This is a reference to Doc Morbid selling his body parts to Iguana Bob in order to use for the meat.
He can heal the Vault Dweller - for a price. After talking to him, there is no way to leave without him going hostile, unless he is paid to be healed. However, the Dweller is free to go inside his basement, and get the information to blackmail Iguana Bob of the Hub. It should be noted that when badly wounded, the price to heal the Vault Dweller can be 500 caps (or more).
If you go down into the basement and talk to Morbid, he will accuse you of trespassing. If you tell him to wait and tell him that he is far more powerful than you are, he will offer you a deal. If you ask what he means, he will say that he will take something from you, and then the two of you will be even. If you agree, he will remove one of your eyes. He will say that "half of what you have just seen" is now his. The removal of your eye gives you Eye Damage and sets your Perception to 1. If you speak to him again after this, he will attack you.