A new report by NHS Devon on the future of Seaton Hospital's vacant ward is to go before Devon County councillors in March.
The leaseholder, NHS Devon, is looking to hand the building back to landlord NHS Property Services to save the £280,000 yearly rent.
There are fears that it could be sold or demolished if this happens.
Devon's Health & Adult Care Scrutiny Committee discussed the situation at its meeting last Wednesday (January 24), but agreed to wait for NHS Devon's next report.
Seaton's MP Richard Foord (Liberal Democrat, Tiverton & Honiton) said he was disappointed that the committee hadn't unanimously opposed the potential loss of the ward. He is due to meet representatives of NHS Property Services on Wednesday, January 31 to discuss possible ways forward.
The MP for East Devon, Simon Jupp (Conservative), is also campaigning to save the threatened ward. He has met the health minister Lord Markham and raised his concerns with the local NHS.
The hospital wing was paid for with money raised by local residents, and both local MPs are hoping Devon NHS and NHS Property Services can reach a deal that will enable it to be handed back to the community for use as a health hub.
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