District in capital, with hospital (6)
I believe the answer is:
parish
'district' is the definition.
(parish is a kind of district)
'capital with hospital' is the wordplay.
'capital' becomes 'Paris' (Paris is the capital of France).
'with' means one lot of letters go next to another.
'hospital' becomes 'H' (abbreviation for hospital on maps).
'paris'+'h'='PARISH'
'in' is the link.
(Other definitions for parish that I've seen before include "Ecclesiastical area" , "Local church community" , "Local government area" , "Part of diocese" , "administrative district" .)