The little man's hospital (5)

'hospital' is the definition.
(short for St Bartholomew's Hospital)

'the little man's' is the wordplay.
I cannot really understand how this works, but
'the' could be 't' (the is pronounced as a 't' sound in some dialects) and 't' is located in the answer.
'man's' could be 'bars' and 'bars' is found within the remaining letters.
This accounts for all the letters.
This may be the basis of the clue (or it may be nonsense).

Can you help me to learn more?