Cut policeman seen around hospital (4)
I believe the answer is:
chop
'cut' is the definition.
(chop is a kind of cut)
'policeman seen around hospital' is the wordplay.
'policeman' becomes 'cop' (I've seen this before).
'seen around' indicates putting letters inside.
'hospital' becomes 'h'.
'cop' placed around 'h' is 'CHOP'.
(Other definitions for chop that I've seen before include "Cut - a piece of meat" , "Karate blow" , "Use a cleaver" , "Abolish, cut of meat" , "mutton slice" .)