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Managers at North Devon District Hospital have produced a plan to save £3.1m which they hope will put the hospital on a better financial footing.
The plans include staff restructuring, a community nursing review, cancelling some study leave until next year, and examining various hire costs.
Managers accept that it is no longer practical to try and save the full £9.4m overspend.
They say the measures will not affect patient care.
If successful the measures would leave the North Devon Healthcare Trust facing a £6.8m overspend for the year.
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