A Suffolk hospital has admitted that its £2.7m debt represents a significant risk to health provision.
Despite cutting back on the use of agency nurses, Ipswich Hospital has overspent on its nursing budget by £855,000, according to its officials.
The NHS Trust also overspent on drugs by about £600,000, which includes consultants and capital charges.
A hospital spokesman said the deficit is due to be discussed at a public board meeting on Friday.
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