It is idiomatic of some institutions, Kumambachi, presumably because we are thinking of the nature of the operation rather than the physical structure, and is not of recent origin. The use is the same for AmE, with the exception of 'hospital'-- 'in prison', 'in church', 'in school', 'in college', 'in university', 'in elementary school', 'in class'. 'In jail', 'in university', 'in hospital', etc, however, only apply to the prisoners, students and patients, respectively-- those who are matriculating, attending etc.
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AnonymousThe confusion comes from the fact that American English adds the word "the", even though it is unnecessary and contradictory. That makes it sound as if there is only one hospital in the entire USA that all its people go to, and it has a sign on it that reads "The hospital".It doesn't sound contradictory to Americans. It's no more illogical or unneces