The changes will mean more out-of-hospital care

Some 57 hospital beds will be lost in total, with three wards combining into one in Lincoln, two more lost in Grantham and one in Boston.

The United Lincolnshire NHS Trust said without urgent action the shortfall this year would have topped �20m.

Managers say it is a good move to have people stay in a ward for a shorter time with more out-of-hospital care.

Tim Rideout, chief executive of West Lincolnshire Primary Care Trust, said: "Clearly we don't plan to overspend. Now we are taking very focussed action to deal with that matter."

He added: "Our primary focus is to ensure that really we can provide alternative arrangements for treatment where they really do not need to be in hospital, but there are no alterative facilities in place.

HOSPITAL WARD CLOSURES Lincoln County: three wards combining into one emergency assessment unit, with several other changes for a total loss of 42 beds Grantham and District: 10 stroke and 4 young rehabilitation beds on Ward 7 will move to Ward 1 with 15 beds lost Boston: Ward 8A, dealing with medical emergencies

"The positive side of this story is that there are plans to radically improve community services so that people can be treated at home, or nearer to home."

Mr Rideout said the changes would improve health care in the county.

He said there have been plans to change the way people were treated - changing the emphasis from hospital to community care - but admitted the "pace of change" was being speeded up by the overspend.

Lincs patients stay about 6.7 days per visit and there are plans to reduce that to a 5.5 day average.

Despite the cuts, Grantham will get its first MRI scanner at a cost of �1.5m.