The alleged victim of the assault sat at the man's bedside during the 10-minute hearing.
He is also charged with intent to intimidate Wi Karaitiana by threatening to damage a dwelling house in Dannevirke on August 23 this year.
The court was told Hastings police were still investigating and further charges could follow.
Judge Emma Smith granted the man bail until next month with special conditions that he remain in the care of Canterbury District Health Board, did not leave the hospital facility at any time, and did not approach or contact one of the complainants.
She also granted him interim name suppression after being "persuaded in the unusual circumstances you present".
The man was shot by police early on October 20, after the car he was a passenger in was stopped by police near Otane, south of Hastings.
He was known to police and was the subject of a police operation in central Hawke's Bay the night before, with the Hawke's Bay armed offenders squad searching several properties in Porangahau looking for him.
After the car pulled over, the man allegedly approached the police car in an aggressive manner and told the officer standing by the car he had a gun and was going to kill him. As he advanced on the officer he was allegedly concealing something in his sweatshirt pocket.
Police said the officer backed away, warning him to show his hands and that police were armed.
The officer then fired a single shot at the man, hitting him in the torso. As the police officers struggled to restrain him on the ground, he allegedly told them he had a grenade and was going to "blow them all up".
The Independent Police Complaints Authority is investigating the incident.