A new £4.5-million hospital could be up and running in Okehampton in two years' time, a meeting at the town's rugby club heard last week.
Exeter and District Community Health Services Trust has announced it is now close to agreeing a deal which would mean the new hospital could be built on land in Crediton Road — provided planning consent is granted.
The proposal has already been given the nod by both North and East Devon Health Authority and the NHS regional office in Bristol.
Eddie Herbert, the Trust chief executive, said: 'We have already set up a project team which will be meeting soon to begin the more detailed planning we need to do.
'This stage, which includes planning applications and consultations, will take about 12 months.
'We hope to be able to make a start on the site in the spring of next year, with first patients being welcomed in the summer of 2002.'
Mr Herbert said the programme had to be flexible to allow for any unforeseen difficulties, but 2002 was the Trust's target.
The new hospital will replace the two existing buildings in Okehampton — the Castle Hospital and the District Hospital.
The Trust considers it would be too expensive to bring both buildings up to meet modern nursing and medical needs — a new hospital would be the most cost-effective option and the £4.5-million cost could be met from capital resources.
Mr Herbert said the council had been 'tremendously helpful and supportive'.
'I know that for local people it can and does seem that no progress is being made, but the reality is there's an awful lot happening behind the scenes to achieve these hospitals.
'We have been greatly encouraged by the enthusiastic support of the League of Friends in Okehampton who in turn, rely on their local communities,' he added.
Health Trust spokesman Alan Connett said it was 'early days' as far as the future of the present hospital buildings was concerned.
'Both hospitals are owned by the Trust and if we opened a new one they certainly wouldn't continue as a hospital — no firm decision has been made yet,' he said.
Mr Connett said it was possible the District Hospital could remain in health service use as it was situated 'right next door' to the doctors' surgery, but no plans exist yet.
He said facilities at the new hospital are still 'very much in the melting pot'.
The services offered at present would be replicated, but on one site in one modern building.
As the site in Crediton Road is sloping, Mr Connett said it was likely services like catering could be situated at basement level with all patient services on upper levels.
The two hospitals at Okehampton cover a range of services including general nursing, maternity, radiography, casualty, physiotherapy and outpatients.
'Actually, there is quite a wide range of very good health services in Okehampton and they will grow and expand as the need arises,' said Mr Connett.
The proposed site is owned by Eddie Hawkins.
Mr Hawkins said: 'I am delighted the Trust wishes to acquire my site which I feel is a most appropriate location for the town's new hospital.'
Christine Marsh, mayor of Okehampton, said 'a lot of hard work' had been put into achieving the new hospital.
'I think it's great, I am thrilled it's going to be up and running,' she said.