THE axing of up to 150 jobs and the closure of hospital wards in Winchester have moved closer.

Managers at the Winchester and Eastleigh NHS Healthcare Trust say they are almost certain to impose compulsory redundancies as they battle to modernise the service and overcome chronic financial problems.

Even nurses could be made redundant as managers try to save £5.5m before April 2006. Managers hope to make the reductions through natural wastage, retraining and redeployment.

Bosses plan to save five per cent on staffing costs across the healthcare trust and the Mid Hampshire Primary Care Trust. They currently employ about 3,000 people and run sites including the Royal Hampshire County Hospital in Winchester.

The boards of the two trusts have agreed the proposals.

They have supported an initial cut of 34 beds at the RHCH once the Treatment Centre is opened and up to another 41 at a later stage.

The jobs could start to go from July. Cutting jobs could save £4m a year, the healthcare trust board heard.

Managers say the cuts are crucial to put the trust on a sound financial footing.

Changes to clinical practice means the hospital can treat the same number of patients but with fewer beds, using more day care when the Treatment Centre opens this summer. It will reduce the need for patients to stay overnight.

New nursing homes will reduce bed blocking with about 50-60 beds being used by elderly patients.

GPs will be encouraged to treat more people locally and refer fewer patients to hospital.

Chris Evennett, the acting chief executive of both trusts, said they could not carry on running deficits. To do so would threaten the number of services offered in Winchester, he said: "We have to grasp this opportunity to bring the local NHS into balance and make ourselves more efficient. I believe we can improve care and cut costs.

"We want to provide the same level of service in a more cost-effective way."

A formal consultation with staff over the cuts will begin on April 1.

Barbara North, chairman of the healthcare trust, said the decision to cut jobs was not an easy one. But she added: "We have been trading effectively insolvent. Now we have the chance to rectify that position.

"I know people will worry. This is about delivering 21st century healthcare which is much better. The transition to a more modern way is going to be difficult."

Pam Smith, chairman of the joint trade unions, told the meeting: "There are fears about closing beds and people not being redeployed. Nurses will be lost to the system."