You can create another feature layer with the 'where' clause to select the individual county:import arcpy
from arcpy import env
env.workspace = r"C:\temp\python\test.gdb"
env.overwriteOutput = True
county = "Counties"
hospitals = "Hospitals"
# Create feature layers for the selection
arcpy.MakeFeatureLayer_management(county, "county_FL", "POP2000 > 999999")
arcpy.MakeFeatureLayer_management("county_FL", "county_FL2", "NAME = 'CHESTER'")
arcpy.MakeFeatureLayer_management(hospitals, "hospitals_FL")
# Find all hospitals within counties with a population >= 1,000,000
arcpy.SelectLayerByLocation_management("hospitals_FL", "INTERSECT", "county_FL2")
# Create a feature class from the selection
arcpy.CopyFeatures_management("hospitals_FL", "hospitals_selection")