THE new service and financial plan spells out how United Lincolnshire Hospitals plans to claw back its over spend over the next three years - including reducing staffing levels by up to 700.
The Trust needs to reduce its operating costs by at least £44.6 million, and plans to achieve it over a three year period.
Mr Walker says he does not anticipate any major service changes in 2007/08, and that instead the money will be saved by impr
oving efficiency and reducing waste.
The Trust will aim to reduce its staff by up to 700 staff through natural staff turnover and transfers.
It is also looking at ways of improving the managment of its buildings and estate; options may include transferring the estate to another trust or selling some buildings and land.
The Trust uses a third more floor space than the national average for the services it provides.
Mr Walker said: "There are no areas of Grantham Hospital allocated for disposal at the present time, although many parts of the estate are not currently in use as the buildings are unsuitable.
"We will continue to explore funding sources to modernise our buildings and hope to be able to update you in a few months' time."
Mr Walker said the demand for an A&E service at Grantham justified keeping it open.
He said:"The A&E Department at Grantham does not meet the definitions from various organisations, including the Royal College of Surgeons, British Orthopaedic Association and the College of Emergency Medicine.
"Despite not meeting these standards it is clear that these departments have been operating without major risk for some years with appropriate transfer arrangements in place, and therefore there is no immediate need to change the service."
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