All 48 beds at Abingdon Hospital are open for the first time in more than two years following a successful staff recruitment drive.
Manager Jacky Hourahane said: "This is good news for the hospital and the people of Abingdon and district. Now we can offer the community a first-class service.
"Both our wards are operating to their full potential and we have managed to fill vacancies in other key areas."
Two years ago 12 beds were shut due to staff shortages and, in 1999, 24 beds were under threat as part of a cost-cutting exercise. Protesters mounted a successful campaign and the Government backed down.
A recruitment drive a year ago reduced the bed closures to three and a high-profile campaign in November has ended the problem. There were 14 vacancies, six in nursing, and eight support staff posts.
Mrs Hourahane said: "Nursing posts are the key area but the other positions are important too if the hospital is to perform to its full."
Dilys Jackson, chairman of the hospital's League of Friends, said: "This makes our efforts promoting and helping the hospital worthwhile. A few years ago the future was looking bleak but now we can look forward with confidence."
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