Derriford Hospital is facing a �25m overspend this year

Derriford Hospital in Plymouth is to cut 400 posts after announcing in March it would be axing 200. Up to 100 compulsory redundancies are possible.

The biggest hospital in the South West, which is facing a �25m deficit this year, is still planning to cut 50 beds.

Hospital managers said that more day cases meant fewer patients needed to stay in overnight.

Plymouth Hospitals NHS Trust said the hospital had already stopped using agency nurses which had saved �4.6m.

Managers added that they hoped to limit compulsory redundancies, and that most jobs would go by not filling vacancies.

But unions said that staff were "very concerned" about cuts.

Iain Andrews of the union Unison said: "The trouble is that we don't know where they're going to be.

"Management are still discussing the conditions, but our members are out there wondering if it's going to be them in the firing."

Operation invoices

Meanwhile, north Devon's main hospital in Barnstaple has been has been criticised the running of its finances.

A report by consultants Grant Thornton said North Devon District Hospital was facing an �8m overspend.

The report's criticisms included how the hospital did not record and invoice some of the operations it was doing, so it did not get the funding needed to pay for them.

The hospital's finance bosses said they were aiming to cut the overspend to �6m, and that some of the problems were because the systems in place were not right. They added that it was not the fault of any individuals.