Plans to expand the accident and emergency unit at the Royal Cornwall Hospital have been put on hold.
A new accident and emergency department was proposed last February to cope with the 50,000 patients seen every year - 10,000 more than it was designed for.
But concerns about the hospital trust's financial deficit have halted plans for the £7m extension.
A Royal Cornwall Hospitals Trust spokeswoman said it did not rule out the project happening in the future.
The trust is cutting costs and 300 jobs to reduce a £31m deficit.
The Strategic Health Authority has told managers the debt must not grow beyond £20m by the end of this financial year.
A recovery plan is in place that is designed to save about £9m.
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