DERRIFORD Hospital senior managers have praised employees for their "incredible" efforts amid growing cash and staff pressures.

The thanks comes as the hospital prepares to save up to £25million next financial year.

Finance chiefs said the organisation must "carefully and urgently" work out how to continue providing services on less money.

The huge 2012/13 target is being set as hospital managers wrestle the current year's plan – to save £31million in order to break even by April.

Schemes have included hospital-wide efficiencies, cutting around 280 posts and closing 130 beds.

Joe Teape, Derriford's director of finance, said: "I know we have had issues. I think we want to recognise publicly the effort people put in to keep the hospital safe over busy periods."

A report on ward staffing presented to the board stated: "Many wards have experienced increased pressures during the winter months as a result of a high utilisation of beds, high levels of nursing vacancies and difficulties in sourcing temporary staffing.

"The senior management team has been reviewing the ward position on a weekly basis with a view to ensuring appropriate action is taken to maintain safety and support our staff."

The trust is currently recruiting nursing staff to account for natural turnover.

Peter Burroughs, acting board chair, said he has visited wards and been "incredibly impressed by the way they have coped".

The number of full-time-equivalent staff in post fell from 5,364 in March last year to 5,173 in December. The board papers state there were 314 'budgeted vacancies' in December.

Hospitals across the country face severe cash constraints amid budget cuts, rocketing costs of treatments, a nationwide efficiency drive and NHS restructuring.

Mr Teape presented the latest figures at Plymouth Hospitals NHS Trust board meeting yesterday.

He said there is still pressure on hospitals to do the same work for less income, amid a system of fines and penalties for not hitting targets.

"We need to be very carefully and urgently working out how we continue to provide the services we do for less money," he said.

About this year's target, he said: "We think our overall plan is on track and we are still expecting to achieve our plan to year end."

December's figures show Derriford was £3.2million in the red – £250,000 off a revised plan presented last month.

Mr Teape said the hospital is looking at a savings target of between £19million and £25million next year, depending on how much is achieved by April. The higher sum is 6.5 per cent of the organisation's overall budget.

The plan aims to leave the hospital with a £4million surplus to support its foundation trust plans.

All departments are submitting reports on "consultant job planning, cost pressures and first cut savings plans", which will help form to 2012/13 business plan.

Proposals are being drawn up during a pivotal time for the hospital.

Plymouth Hospitals is relaunching its bid to become a foundation trust, which would give it greater freedoms from Government control.

Over the coming five years the trust aims to expand research and specialist services, particularly major trauma, cancer and paediatric services.

The organisation is seeking both a permanent chair and chief executive.