An investigation by the health watchdog Monitor has found no breach of regulations in the commissioning of community health services in east Devon from the Royal Devon & Exeter NHS Trust.
The inquiry was sparked by an objection from the current provider, the Northern Devon Healthcare Trust.
It claimed the Clinical Commissioning Group had acted unfairly.
Monitor doesn't agree - but says the CCG does need to do more work to ensure value for money before awarding the RD&E Trust the contract.
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