Bosses said they are not planning any redundancies
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Hospital managers in Torbay have announced they are facing a budget shortfall of more than �8m this year.
But Torbay Hospital's trust board said it is not planning any redundancies. The board meets on Thursday to approve a budget of �160m.
It anticipates its costs will go up by 9% whilst income will increase by 2.4%.
Managers said they are confident savings can be made through good housekeeping. Bosses saved �6m last year without any compulsory job losses.
The trust needs to save a total of �8.4m so bosses said they will look carefully every time there is a vacancy to see if it is possible to avoid filling it.
They will also try and use bank staff effectively and avoid using agency staff.
Part of the 9% increase in costs is because the hospital is having to invest in new digital radiology and IT, which finance director Joe Teape believes could help to save money in the long run.