Mrs Green said the problems had affected staff

Jenny Green resigned from the United Lincolnshire Hospitals NHS Trust at the start of March and was speaking at what is probably her last meeting.

It is feared a continuing overspend of more than �2m a month may lead to significant job losses.

She said staff had been put under "a lot of pressure" by the situation.

'Cannot continue'

Mrs Green said: "We have had severe financial difficulties, we have had one recovery plan after another.

"We have put our staff under a lot of pressure, reducing head count, reducing the number of beds we've got and trying to modernise out services.

"What is clear is we cannot continue in the way we are trying to deliver services across Lincolnshire."

She resigned as chairman saying that "new skills" were needed to face current challenges.