Prize for a hospital room (5)
I believe the answer is:
award
'prize' is the definition.
(I know that prize can be written as award)
'a hospital room' is the wordplay.
'hospital room' becomes 'ward' (I've seen this before).
'a'+'ward'='AWARD'
'for' is the link.
(Other definitions for award that I've seen before include "Maybe damages" , "Gong (informal)" , "Honour, accolade." , "Give, grant" , "Allotment" .)