Section in old hospital with no luxuries (7)
I believe the answer is:
spartan
'with no luxuries' is the definition.
(spartan means basic or austere)
'section in old hospital' is the wordplay.
'section' becomes 'part' (synonyms).
'in' indicates putting letters inside.
'old hospital' becomes 'san' (short for sanatorium).
'part' going within 'san' is 'SPARTAN'.
(Other definitions for spartan that I've seen before include "Austere - disciplined" , "Disciplined person" , "Severe" , "Ascetic - ancient Greek" , "toughly-disciplined type" .)