Turns out, doctor snapped -- finally dismissed by hospital (7)
I believe the answer is:
happens
'turns out' is the definition.
(I've seen this before)
'doctor snapped finally dismissed by hospital' is the wordplay.
'doctor' indicates anagramming the letters.
'finally dismissed' means to remove the last letter.
'by' is a charade indicator (letters next to each other).
'hospital' becomes 'h' (abbreviation for hospital on maps).
'snapped' with its last letter taken away is 'snappe'.
'snappe' anagrammed gives 'appens'.
'appens' put after 'h' is 'HAPPENS'.
(Other definitions for happens that I've seen before include "Occurs" , "Turns out" .)