Dedicated hospital given permission (8)
I believe the answer is:
hallowed
'dedicated' is the definition.
(thesaurus)
'hospital given permission' is the wordplay.
'hospital' becomes 'h'.
'given permission' becomes 'allowed' (I've seen this before).
'h'+'allowed'='HALLOWED'
(Other definitions for hallowed that I've seen before include "Honoured as holy, having lewd halo" , "Revered" , "Respected" , "sacrosanct" , "Consecrated, blessed" .)