Shropshire's two main hospitals have been told to reduce their overspend by about �7.5m by the end of March. Shrewsbury and Telford Hospital Trust's chief executive, Tom Taylor, said the strategic health authority had imposed a challenging cost-cutting exercise.
The trust could be �14m in debt by the end of the financial year, if spending continues at the current rate.
But the authority has ordered that this figure is reduced to �6.5m.
Mr Taylor said staff had been warned that if they did not come up with ways of saving money, they would have them imposed on them.
He added that any change to services should be subject to public consultation.
The trust was formed in 2003 with the merger of the Princess Royal Hospital in Telford and the Royal Shrewsbury Hospital.