Mr White would like doctors and staff to be trustees of the hospital

Epsom and St Helier Hospitals Trust is axing up to 170 beds and 480 jobs at its two hospitals as part of a drive to save �24m over the next 18 months.

But Adrian White, who was chairman of the former Epsom Trust, said many of the staff would be re-employed and beds brought back if his offer was accepted.

The trust said its board had yet to discuss Mr White's �20m proposal.

A spokesman for Epsom and St Helier Hospitals Trust added: "There isn't any detail in Mr White's letter about how the proposal would work or help meet the pressures facing the trust.

"Once we have more information, we will be in a better position to respond to the proposal."

'Dramatically reduced'

The 64-year-old businessman, who has a wife and five children, owns water treatment company Biwater which operates in 60 countries.

He said the purchase of the hospital, which has about 300 beds, was offered by way of a donation from a charitable trust which would be "solely a gift with no return".

The local community, doctors and staff would be trustees, with the hospital managed locally, he added.

Under his proposal the NHS would continue to provide the main services, Mr White said.

"If we are able to work with the trust to show them the savings that can be made by the site being taken over, run and maintained by the people who are running the hospital, and who own it... not only would they get the capital value of the site but operating and maintenance costs would be dramatically reduced."

�24m savings

Mr White, who uses Epsom General Hospital, said a contract would be drawn up between the charitable trust and the NHS to prevent the site from being sold or mortgaged. The contract would also ensure funds were put back into services.

"Their cost base would be lower and their operation would be more efficient - we wouldn't have the tiers of management at three or four levels above us as we do at the moment."

Mr White said that following a heart operation in the US he noticed how benefactors contributed huge amounts of money for complete buildings and research so the hospital would be safeguarded.

Epsom and St Helier Hospitals Trust is not currently in debt but needs to make the �24m savings to balance its books in future.