DERRIFORD Hospital is looking to 'significantly' cut staff posts as managers wrestle with huge savings targets.

It is the latest change to emerge as part of the hospital's current £27.5 million savings plan, wider financial pressure and NHS restructuring.

Managers intend to leave vacancies empty and avoid external recruitment rather than make staff redundant, according to a report prepared for the hospital board.

Health chiefs said service safety and quality will remain paramount but unions warned reducing posts will hit staff morale and patient care.

The board report also reveals the hospital was £3.3 million behind this year's cash target — but is breaking even after being bailed out by NHS South West.

Plymouth Hospitals NHS Trust, which runs Derriford and the Royal Eye Infirmary, has 471 vacancies and 5,454 staff in post.

The number of posts to go has not been set, but the report states bosses aim to keep as many vacancies as possible permanently unfilled.

Paul Roberts, Plymouth Hospitals chief executive, states in the report that this year's savings are a "huge challenge".

They come amid massive change and financial pressure across the NHS. As well as the Government this month announcing plans to hand more power to GPs, the health service has been asked to find £20 billion in countrywide 'efficiencies' over the next few years.

Mr Roberts states: "The scale of the savings will require a significant reduction in the number of posts employed, in this trust if not the whole system.

"In order to avoid redundancies, the use of in-house and cross-NHS community redeployment needs to become the norm and external recruitment very much the exception."

He states the "challenge of a large recurrent savings target in an environment of shrinking resources is likely to be the pattern for the next few years".

A statement released by the hospital yesterday added: "Like the rest of the public sector, the NHS is facing its toughest ever financial climate.

"This means we must continue to improve the quality of patient care whilst making significant financial savings. It is far too early to say how many posts may eventually be affected, but we are committed to working with our staff throughout any period of change.

"It is paramount to us to ensure we offer a safe and high-quality service and all plans are drawn up with this requirement in mind."

The board papers say only a proportion of savings will 'realistically' come from internal efficiencies, and a Plymouth-wide health service redesign will be critical. This includes all of the city's NHS services, Plymouth City Council and GPs working to change the way care is delivered.

Tony Dowling, regional officer for the GMB union, said reduction in staff will 'absolutely' affect patient care — and warned of swingeing cuts across the NHS.

He said: "When it comes to the NHS, we've heard the hype from the coalition Government about protecting frontline services but that's going to be incredibly difficult to achieve with the cuts they are planning. For Derriford Hospital, it's hard to see how reductions in staff will impact. They are yet to have specific consultations about the specific numbers involved."

A British Medical Association spokesman said: "In this tight financial climate, difficult decisions need to be taken, and there may well be areas where there is a genuine need to examine ways of working. However, there is a danger that staffing cuts will have a lasting impact on services."