Polynesian artist outside a hospital (8)
I believe the answer is:
tahitian
'polynesian' is the definition.
(I know that Tahitian is a type of polynesian)
'artist outside a hospital' is the wordplay.
'artist' becomes 'Titian' (16th-century painter).
'outside' is an insertion indicator (some letters go outside others).
'hospital' becomes 'H' (abbreviation for hospital).
'a'+'h'='ah'
'titian' placed around 'ah' is 'TAHITIAN'.
(Other definitions for tahitian that I've seen before include "Polynesian islander" , "It, in a hat (anag)" , "inhabitant of island" , "someone on tropic island" , "South Sea islander" .)