Stories about a hospital in city (6)
I believe the answer is:
lahore
'city' is the definition.
(I've seen this before)
'stories about a hospital' is the wordplay.
'stories' becomes 'lore' (I've seen this in another clue).
'about' is an insertion indicator.
'hospital' becomes 'h' (abbreviation for hospital on maps).
'a'+'h'='ah'
'lore' enclosing 'ah' is 'LAHORE'.
'in' is the link.
(Other definitions for lahore that I've seen before include "Capital of Punjab" , "Or heal the strange Pakistani city" , "Asian city" , "Heal or go out to the Pakistani city" , "Pak. Punjab city" .)