HOSPITAL chiefs have announced the latest ward closure in an attempt to cut costs and balance the books.

Under its financial recovery plan, Winchester and Eastleigh Healthcare Trust, which runs the Royal Hampshire County Hospital and Andover War Memorial Hospital, needs to save £11.2m by April this year.

The cash-strapped trust is proposing to cut 125 beds, equal - to four whole wards, as well as shed 310 jobs - within three years.

Two wards at the RHCH - Victoria Ward and St Cross - have closed since last October plus five beds in family services.

Now the plan is to close a further 21 beds by May.

Clarke Ward, including six coronary beds will close, but four high dependency beds will transfer to a high care cardiac bay in the intensive care unit.

Hospital managers say up to six beds on Clarke Ward will be kept as "contingency beds" to be reopened when there is high demand.

A member of staff, who asked not to be named, said: "We are all frightened for our jobs. People are just waiting for something to happen.

"People are leaving and not being replaced. Morale is getting low."

Other wards are also being reorganised, including Clifton ward and the stroke unit which will move to Victoria and Twyford Wards where there will be new single and double en-suite rooms to help infection control.

Taunton Ward will become an extension of the Emergency Medical Assessment Unit. St Cross Ward will be refurbished and have 28 beds for surgical patients.

Chris Evennett, chief executive, said the bed closures were not just about saving money.

He said: "These must do more than make savings. They must be a catalyst for doing things differently, modernising the service and create a lasting improvement. Our solution will benefit a number of different services - this couldn't have been achieved by simply closing one ward."

Mr Evennett cited as examples creating a high care cardiac bay and centralising women services, including breast surgery, at Florence Portal House.

The hospital boss said he was confident the trust would break-even by the end of the financial year.

He said: "Thanks to the effort and ideas of staff, great progress has been made towards the £11.2m savings target for 2006/07. About £4m has already been saved. The trust is confident it will deliver £9.8m by March 2007.

"Further measures are in place to close the gap and achieve the £11.2m necessary to break-even."