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15 January 2015, 15:36 | Updated: 15 January 2015, 15:53
The Trust which runs Russells Hall Hospital in Dudley is going to make 400 staff redundant.
The Dudley Group hospitals need to save 14 million pounds after overspending.
All NHS Trusts are forced by the government to save 4 percent every year. The group is blaming increasing costs because of the national standards in nursing levels brought in mean they need to employ more staff on the wards.
All the posts are going to be non-clinical so no doctors and nurses should loose their jobs. The Trust also say they hope the post going will mostly happen through voluntary redunancies.
The Dudley Group NHS Foundation Trust released the following statement to Heart: "In common with all NHS Trusts we are required to make efficiency savings of 4% year on year. This equates to £12m each year to be saved for The Dudley Group. We are also facing cost pressures from national standards of nursing levels, increasing emergency demands and providing seven day services.
"We are currently overspending and predict over £7m deficit by the end of March. We are required to maintain financial balance to enable us to invest in services, equipment and facilities. If we are not able to deliver this, the future of the Trust for the people of Dudley is at risk. We have a legal obligation from our regulator Monitor to recover our finances in line with our financial plan.
"The Dudley Group is entering into a two phased redundancy plan to reduce 400 non clinical posts over the next two years across the organisation to save £14 million on its pay costs to help it achieve financial stability.
"In the first instance we are seeking voluntary redundancies. Depending on the savings made during the voluntary process, we will then seek further compulsory redundancies.
"The Board has decided to seek the biggest staffing reduction amongst non-clinical staff as we continue to ensure we have appropriate levels of staff to keep services safe for our patients.
"Ward based and community nursing, and midwifery posts bands 2, 5 and 6 are not be included in the process to remove posts and, therefore, the redundancy schemes will not apply to these posts.
"Our medical workforce is subject to a separate review looking at productivity and future planning.
"Since November, we have already reduced our spend and have saved £1m through a rigorous vacancy control process and reviewing budgets with managers.
"People closest to the service are leading the proposals for restructures and any decisions will be made in relation to providing best care. All requests will be subject to a rigorous quality impact assessment and only those deemed not to have a significant impact on our high quality of care to patients will be approved.
"I would like to reiterate how hard we have worked to avoid this situation. "