Detective Corporal Kevin Adams, who was accused of killing a suspect at the May Pen Hospital in 2014, was freed on Friday before the Home Circuit Court.
Prosecutors conceded that they did not have sufficient evidence to pursue a case against him for the death of Adif Washington.
Mr. Washington was killed on January 1, 2014 when masked gunmen invaded the May Pen Hospital.
He was in one of the wards being treated for bullet wounds.
The Independent Commission of investigations (INDECOM) claimed a spent shell found on the ward was linked to the policeman's gun.
However, a forensic firearm examination was inconclusive, resulting in prosecutors offering no further evidence in the case.
Corporal Adams was accused of being a member of a Clarendon-based death squad which targeted wanted men.
He was charged with four counts of murder, but three of the cases have been dismissed against him.
Corporal Adams is to return to court on December 18 when the remaining case will be mentioned.