Around 15 caravans arrived over the weekend and are currently using around a third of the spaces.
Officials from the hospital say they are working with the police and Devon County Council to sort out the issue.
Buses are running as usual and there are extra parking spaces at the supermarket at Digby.
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Devon's train back in public hands
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No experience needed
Two injured as car crashes and bursts into flames
BMW hits trees near Bideford
New science 'MetaHub' based in Exeter
Large investment in tiny research
Salcombe knocked off pricey property pedestal
It's now only the second most expensive coastal town
