Crossword Genius

Reside on cape in city hospital post (9)

Ross

I believe the answer is:

residency

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

'post' is the definition.
(I know that residency is a type of post)

'reside on cape in city' is the wordplay.
'on' is a charade indicator (letters next to each other).
'cape' becomes 'c' (abbreviation used on maps).
'in' is an insertion indicator.
'city' becomes 'ny' (short for New York).
'c' going inside 'ny' is 'ncy'.
'reside'+'ncy'='RESIDENCY'

'hospital' is the link.
I am not very happy about this link. It may belong to another bit of the clue.

Can you help me to learn more?

(Other definitions for residency that I've seen before include "Position in house" , "temporary post as artist" , "live-in post" , "Fact of living in a place" , "circumstance of living in a particular place" .)

I've seen this clue in the Sydney Morning Herald.
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