About 300 jobs are to be cut at a Wolverhampton hospital to claw back some of its debt that is set to top £38 million, health bosses confirmed.
The jobs are being axed at New Cross Hospital which has been spiralling into debt for several years.
Staff at the Royal Wolverhampton Hospitals Trust, which owns the hospital, were told of the cutbacks by chief execut ive David Loughton yesterday afternoon.
In a statement, he said: "Although the trust has hit its Financial Recovery Plan targets for 2005/06, there will be revised financial targets in 2006/07 that will mean current savings plans will need to be revised.
"It is clear to hit these revised financial targets, there will need to be job losses, as the trust is anticipating the effect of the tariff for 2006/07 will w orsen the current
financial position. It is difficult, at this stage, to be precise with regard to the h eadcount reduction required, but it is believed that this will be in the order of 300 and at this stage it is hoped to achieve this reduction by natural wastage.
"This may or may not be possible and there may need to be compulsory redundancies."
Last year a scheme to merge the hospital with a neighbouring one in Walsall was scrapped despite the fact the project would have wiped out its debt.
Earlier this week, Plymouth Hospitals NHS Trust announced it was cutting about 200 jobs to help save £22 million. The cuts are expected to be made through its annual turnover of 600 staff. The trust employs approximately 6,000 people.
C onsultations have begun with unions and bosses will appeal to staff who wish to take voluntary redundancy or early retirement.
Cash problems have also hit Trafford NHS Trust, in Greater Manchester, after 24-hour care was cancelled to save money.
Two in-patient wards at Altrincham General Hospital were shut this month because there were not enough doctors employed to safely run them.
