Hospital invested in most recent cutting-edge equipment (5)

I believe the answer is:

lathe

I'm a little stuck... Click here to teach me more about this clue!

'cutting-edge equipment' is the definition.
I can't tell whether this definition defines the answer.

'hospital invested in most recent' is the wordplay.
'hospital' becomes 'h'.
'invested in' indicates putting letters inside.
'most recent' becomes 'late' ('late' can be similar in meaning to 'recent'. I am not sure about the 'most' bit.**).
'h' inserted within 'late' is 'LATHE'.

Can you help me to learn more?

(Other definitions for lathe that I've seen before include "8 [TURNER]" , "Machine tool for shaping metal or wood" , "Machine for cutting, drilling or polishing" , "Revolver" , "Rotating machine tool" .)

I've seen this clue in The Telegraph.

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