A man is in a critical but stable condition after being shot by police outside Lithgow Hospital in the New South Wales Central Tablelands.
Police allege the man produced two knives when officers attempted to arrest him on Tuesday.
An officer then shot the 34-year-old in the stomach.
After being treated at the scene the man was airlifted to Westmead Hospital in Sydney, where he remains.
Assistant Commissioner Brett Greentree said an independent police district would investigate the critical incident before it is reviewed by the Professional Standards Command.
"I would like to ask anybody in the vicinity, who may have witnessed this incident to please call Crime Stoppers," he said.
Mr Greentree said the man was wanted by police as part of an ongoing investigation and he was not an inpatient at the hospital.
In a statement, a Nepean Blue Mountains Local Health District spokesperson said all patients and staff were safe and Lithgow Hospital and its emergency department remained open.
NSW Police said there were "no persons outstanding" but urged members of the public to avoid the area.
The Law Enforcement Conduct Commission confirmed it had been notified of the incident by police.