Hundreds of beds in Devon's community hospitals could be temporarily closed in a cost-cutting move.
The PCT says a review will result in improved services
One hundred beds have already been closed by Devon Primary Care Trust (PCT) and now another 100 are set to close to head off debts of £15m.
Other cost-cutting measures include a freeze on staff vacancies and overnight closure of all minor injuries units.
The PCT, which says it has already made savings of £1.3m, says there will no loss of service.
A decision on the closures, which will affect about 40% of community hospital beds, will be made early next year following a review.
Chief executive Kevin Snee said the aim of the review would be to "protect and develop" health facilities.
"The review will establish a clear future direction for the improvement of healthcare in Devon," he said.
"It will cover all services. So far as I am concerned we begin with a clean sheet."