A hospital has been told it cannot develop services until a £19m budget deficit has been cleared, but an MP believes it is set to close.
Felixstowe Hospital planned to bring treatment clinics into a main building but the developments were put on hold by the Strategic Health Authority.
Norfolk Suffolk & Cambridgeshire SHA told the Primary Care Trust it would not support development.
MP John Gummer said he feared this meant closure.
Managers have been ordered to bring finances to break-even by March 2006.
MP wants meeting
A spokesman said: "Nothing is ruled out because of the seriousness of the financial position but no decisions have yet been made."
MP for Suffolk Coastal, John Gummer, is demanding an urgent meeting about the matter because he fears keeping Felixstowe General open no longer appears viable to regional health managers.
The MP is angry that despite a series of meetings with health bosses last year, and before the election, he was told nothing about closure plans.