Closing West Cornwall Hospital was one of the options discussed
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The new boss of Cornwall's troubled hospitals trust has ruled out big cuts, widespread job losses and hospital closures to balance the books.
The Royal Cornwall Hospitals Trust had considered changes at St Michael's Hospital in Hayle and the West Cornwall Hospital in Penzance.
But new trust chief executive John Watkinson said both would be maintained and developed.
NHS South West added that the trust would get time to repay its £45m debts.
In August, nearly 30,000 protesters turned out to fight the threat that St Michael's may close to save money. Campaigners also pleaded for a bigger West Cornwall Hospital.
Mr Watkinson said there would be no painful cuts and 24-hour emergency surgery would also be restored if it could be done safely.
He said: "We're going to use those facilities more efficiently and effectively, and I think that that will be more in tune with what the public wants, more in tune with what staff want, and it will be good for patients."
About 300 jobs had been under threat, including secretarial staff who were told their posts were at risk because it might be cheaper to send paperwork abroad.
Now that has been scrapped and Mr Watkinson said he would be working closer with staff, which was welcomed by unions.
Funding increase
Unison regional officer Stuart Roden said: "We had hundreds of staff who had letters at home telling them that they were going to be made redundant, or potentially at risk of redundancy. Now all that cloud has been lifted from them. "
The chief executive of the NHS in the South West, Sir Ian Carruthers, added that although the trust had one of the biggest debts in the country, its funding was to increase and it would be given the chance to pay back the money over several years.
He said: "It has been a tremendously difficult time in Cornwall, but I think we're on the cusp of making progress because we want to get back to building on the strong improvements that have been made."
Details of exactly how health will be provided will be revealed at the end of the month.