The NHS health community in the county faces a shortfall of more than �8m in their budgets.

About 300 staff posts are also at risk as part of plans to deal with the shortfall, managers said.

More people should be cared for at home to reduce the number of hospital beds needed, the county's NHS trust said.

We have agreed that as many staff as possible will be retained and redeployed Roger Paffard, Lincolnshire NHS Trust

The NHS recovery plan means two ward closures are possible at Lincoln County and Boston's Pilgrim hospitals and one at Grantham Hospital.

Dave Godson, Unison branch secretary, said: "At a time of supposed record investment in the NHS, it is ironic that Lincolnshire should be faced with major reductions in bed numbers.

"Staff affected were only told about the plans yesterday, and many of them will have concerns about their job prospects."

He added the union would not accept any compulsory redundancies.

John Hurst, a member of South Kesteven District Council, is worried the closure of one ward at Grantham could raise the question of the closure of the entire hospital.

But United Lincolnshire Hospitals NHS Trust chief executive Roger Paffard said no hospital closures are planned, adding cuts will be made in the number of inpatient beds and staff.

"We have agreed that as many staff as possible will be retained and redeployed, although some of their roles may be carried out in the community, as opposed to in hospitals as currently.

"We have begun discussions with our staff and their representatives in order to handle this matter openly."

�20m shortfall

The NHS health community said the recovery plan depends on: