A struggling hospital trust could be forced to shut three wards and cut services at a community hospital to try and save money.

Closing 27 beds at the Royal Sussex County Hospital in Brighton and withdrawing services provided at Lewes District Hospital are two of the possibilities being considered by Brighton and Sussex University Hospitals NHS Trust.

The trust yesterday announced it was following its neighbour East Sussex Hospitals by imposing a virtual ban on all expensive agency workers to provide cover for holidays, sickness and vacancies.

It will concentrate instead on using its own in-house bank staff which are flexible like agency workers but are not paid the same high rates. Trust director of finance David Dumigan told board members yesterday that letters announcing the ban on agency workers were being sent out to staff.

In August, the trust forecast an overspend by April of £17.6 million. It has brought that down to £14.6 million but has now been told by Surrey and Sussex Strategic Health Authority it has to cut this back by at least another £1 million.

The cuts in agency staff is expected to save about £1.5 million but the board is considering further cuts.

This includes the possibility of closing three small wards at the Jubilee Block at the Royal Sussex and cutting outpatient and general surgery at Lewes.

The trust stresses no firm decisions have yet been made.

Mr Dumigan said: "We are being told to reduce the costs of running the organisation while still meeting our targets."

Primary Care Trusts, which pay for hospital services, are focusing on more services in the community so patients do not have to come into hospital. This has led to less income for hospital trusts but many say they are still seeing high numbers of patients.

East Sussex Hospitals, which runs Eastbourne District General Hospital and the Conquest Hospital in St Leonards, has announced a ban on agency workers and closed two wards.

Worthing and Southlands has also closed 30 beds while Surrey and Sussex Healthcare, which runs Crawley Hospital, has closed wards and cut operations.

l See page 6 for an in-depth look at the financial problems facing neighbouring East Sussex Hospitals NHS Trust.