The trust employs about 1,620 people

The North Devon Healthcare Trust is currently facing a �20m shortfall.

The North Devon Patient and Public Involvement Forum has criticised trust managers and the trust's handling of its current financial crisis.

The trust said it was asking for the support of local people as it continued to try to turn its fortunes around.

We are in a position that is unrecoverable Jono Broad, North Devon Patient and Public Involvement Forum

The forum has written to Health Secretary Patricia Hewitt to pass on its concerns.

It said it was worried about the impact planned job losses and cost-cutting would have on patients and staff morale.

The forum said it wanted the chairman of the trust board to resign and new managers brought in.

Jono Broad of the forum said: "We are in a position that is unrecoverable. Any businesses run like this would have been out of business a long time ago.

"We need to have an end point and a fresh start. A new team is the only thing that will bring a satisfactory end to the public perception that this trust is failing."

The trust said it was shocked and disappointed the forum had chosen to air its criticisms just when efforts to turn things around were starting to bite and when staff were working around the clock to improve the hospital.

Authority loan

A loan of up to �18m from the Strategic Health Authority will help the hospital manage the shortfall.

The trust has already announced it is to cut 60 staff, including about 30 nurses, at Barnstaple Hospital to help save money.

The trust employs about 1,620 full-time staff.