SOUTHEND Hospital is planning to cut 400 jobs and scrap a planned new ward block to save money.

The savings have to be made over the next three years as it is predicted £10million income from NHS South East Essex will be spent providing services away from the hospital.

The primary care trust wants more diagnostic testing to be done in primary care centres by GPs, rather than at hospital outpatient clinics.

In addition, the trust needs to make savings of its own due to the recession and less than expected Government funding.

Bosses have compiled their draft annual plan for 2010-11 which sets out the difficult financial picture.

The plan says it expects 400 full time equivalent posts to go over the next three years, though it is not clear how many employees this would equate to.

The report says it is hoped, where possible, to achieve this by people leaving or retiring and not compulsory redundancy.

By 2013 the hospital will be smaller with between six and eight fewer wards and up to 40 per cent of outpatient services taking place off the hospital site.

One ward is earmarked to close as early as July and another in October.

The report describes the biggest casualty as the development of the new ward block, which would have provided an assessment unit, critical care unit and new ward accommodation.

Chief executive John Gilham said: “The trust itself is not currently in a position to progress with the scheme, but it remains something that we wish to progress with in the future.”

Unison representatives met with hospital senior management for four hours yesterday to discuss the implications of the plan on staff.

Patient group Southend Link representative Tony Hopper said: “I suspect every part of the NHS is having to do more for less. As far as patients are concerned we want to make 100 per cent certain it’s in line with best practice and for their benefit.”

The annual plan will be discussed and is expected to be agreed at next month’s board of directors meeting.