The trust is �19m in debt and trying to save money

The Royal Shrewsbury Hospital (RSH) serves about 50,000 people on the Welsh side of the border in the old county of Montgomeryshire.

The trust running the hospital is in debt, but it said there were no plans to downgrade the department.

Tory AM Glyn Davies is concerned patient travelling times would rise.

Many in Powys rely on the RSH, a 30-minute drive from Welshpool, as the area does not have a general hospital.

It would be desperate news for many people in mid Wales Glyn Davies AM

The nearest Welsh general hospitals are in Wrexham and Aberystwyth, at least an hour away by car.

Shrewsbury and Telford Hospitals NHS Trust is looking at an option of making either Shrewsbury or nearby Telford the primary accident and emergency hospital.

The trust has an accumulated historic debt of �19m, which will rise to �29m by the end of the financial year in March, and has to cut costs.

Mr Davies fears that Welsh patients could be forced to travel to Telford for emergency treatment - a 50-minute drive from Welshpool.

"It would be desperate news for many people in mid Wales if they have to look to Telford for A&E services," said Mr Davies.

He added that he was meeting the chief executive of the Shrewsbury and Telford Hospitals NHS Trust next week.

Mr Morgan has asked Dr Gibbons to examine the issue

In response to a question from the Conservative Mid and West Wales AM, the First Minister Rhodri Morgan has asked Dr Gibbons to examine the issue.

Mr Davies welcomed Mr Morgan's involvement: "I am pleased that the assembly government recognises the crucial role the accident and emergency service at the Royal Shrewsbury plays to large areas of mid Wales."

Clive Walsh, director of a review into the trust's services, said there were "no proposals" to downgrade A&E services at the RSH.

He added: "The health organisations in Shropshire and Telford and Wrekin have commissioned independent consultants to develop a range of initial options for the creation of clinically and financially sustainable health services for the people of Shropshire, Telford and Wrekin and mid Wales."