Crossword Genius

Reduced work in hospitals close to large American city (3,4)

Ross

I believe the answer is:

san jose

I'm a little stuck... Click here to teach me more about this clue!

'american city' is the definition.
(I've seen this before)

'reduced work in hospitals close to large' is the wordplay.
I cannot really understand how this works, but
'large' could be 'os' (abbreviation for oversize) and 'os' is located in the answer.
This explanation may well be incorrect...

Can you help me to learn more?

(Other definitions for san jose that I've seen before include "Residence for Californians" , "Costa-Rican capital" , "US city" , "American city" , "Do you know the Way to - -? (Dionne Warwick)" .)

I've seen this clue in The Telegraph.
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