NHS bosses said this week that there were no plans to close Teignmouth Hospital, despite national media reports that it is one of many community hospitals nationwide that are under threat.
But the chief executive of the newly formed Devon Primary Care Trust, Dr Kevin Snee, said that he could 'never guarantee that the community hospitals will stay as they are for ever'.
Teignmouth's 21-bed ward is currently closed while the 56-year-old lift is replaced. It is expected that the ward will re-open when the work is completed by April.
The opening hours of the minor injury unit have been reduced to 9am to 5pm and ward staff have been re-deployed at other hospitals in the district. Dr Snee said that community hospitals are a great strength in Devon and he wants to build on that asset.
But like all community hospitals in Devon, services at Teignmouth are under review. 'The trust wants to improve quality of healthcare and value for money,' said Dr Snee.
The trust is facing a projected overspend this year and a recovery plan is in place to save £14.43 million.
But Dr Snee said there was no plan to close or reduce services at Teignmouth Hospital, after the Daily Telegraph last week pinpointed Teignmouth in a nationwide map of areas where hospitals were under threat.
Dr Snee said: 'It is quite wrong to give an impression that Teignmouth is going to be closed.
'I have said repeatedly that the network of community hospitals represents a great strength for Devon, and while I would never guarantee that all of them will stay as they are for ever, they are a hugely valuable asset on which I would want to build.'
The hospital has a strong League of Friends, which has raised about £250,000 in the past five years. It has contributed to the modern operating theatre and is donating £50,000 towards the £120,000 lift replacement.
Chairman Bob Nash said he was 'optimistic that there is everything to play for at Teignmouth Hospital. 'We met with Dr Snee and he gave no indication that closure of Teignmouth Hospital is on the agenda.
'We want the Kingfisher ward open and as far as we know, the beds will start opening once the lift is working because community hospitals are a crucial part of the NHS structure,' he said.