A MAJOR review of hospital services is under way in Worcestershire in an effort to save £20m a year.

But experts say this won't necessarily mean cutting jobs or services.

A team of management consultants has been called in by health chiefs at Worcestershire Acute Hospitals NHS Trust to scrutinise every department in a bid to balance the books.

The trust - which runs Worcestershire Royal Hospital, the Alexandra Hospital in Redditch and Kidderminster Hospital - currently has the third worst hospital debt in the country at £23.8m.

To prevent this figure from rising further, health chiefs need to stick to a budget of £225m a year - but it is spending £245m a year.

"We have embarked on a major clinical service review to identify the future shape of safe, affordable, high quality secondary care and services," trust chairman Michael O'Riordan said.

He said the trust faces a huge challenge in the next two years to slash its spending

by almost 10 per cent a year.

This is because as well as having to make efficiency savings, planned short-term financial support from elsewhere in the NHS will come to an end in 2007/08.

"To break even in 2006/07 we either need to obtain extra funding - which we know is not forthcoming - or, like any other organisation where costs exceed income, steps have to be taken to reduce expenditure," said Mr O'Riordan.

The news comes as South Worcestershire Primary Care Trust proposes to close two wards at Evesham Community Hospital in a bid to save £4m.

But health expert Professor Peter Spurgeon, from the University of Birmingham, said saving money did not always mean cutting services or laying people off.

"The financial experts will more likely looking at different ways of making savings - for instance, getting local Primary Care Trusts to provide more

services, he said. This is called 'demand management' trying to find ways to keep people who don't need acute treatment out of acute hospitals. Ultimately, there has to be a community solution.

Mr O'Riordan said it is too early to judge what ideas Finnamore Management Consultants may come up with to make savings across the county's acute hospitals.

He stressed that clinicians, patients and members of the public will be able to have their say on the shape of hospital services in a three-month consultation period which will start in October once the results of the review are published.

"The review will be open and transparent," he promised. "Each part, including the analysis and conclusions, will be conducted in such a way that people know what's happening, understand the process and own the outcome."

The intention is to begin implementing changes from early 2006.

No one from Unison was available to comment as the Worcester News went to press.

Tell us what you think. Contact health reporter Rebecca Fisher on 01905 742260 or email: rf@thisiswor cester.co.uk.