Emergency surgery will not be carried out at a Cornish hospital from the end of August. The Royal Cornwall Hospitals Trust said the cuts at the West Cornwall Hospital would mean all accident and emergency work would be concentrated in Truro.
The move of the work from Penzance to the Royal Cornwall Hospital is aimed at saving money on locum cover.
Managers said it will be reviewed later in the year. The NHS in Cornwall is facing a potential �31m deficit.
Cutting jobs
Surgeons who work in Penzance will operate at the Royal Cornwall Hospital as well, but they will continue to see non-urgent booked appointments at the West Cornwall Hospital.
Managers said cutting emergency surgery at the West Cornwall Hospital would not prejudice other discussions about the future of healthcare in the west of the county.
The trust is cutting costs and 300 jobs to reduce the �31m deficit.
The Strategic Health Authority has told managers the debt must not grow beyond �20m by the end of this financial year.
A recovery plan is in place that is designed to save about �9m.