NHS mega-trust with £200m debt planned to save hospitals

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In a last-ditch effort to survive, the move would see the three south-east London trusts pool resources and cut costs. Bromley Hospitals, Queen Mary's Sidcup and Queen Elizabeth trusts will today begin consulting staff on the proposed merger.

It could save the three organisations £2.5million immediately but there are fears the move would see services centralised within the proposed mega-trust. There is also concern over the distance between the hospitals in the new organisation - 12 miles separate hospitals in Bromley from the Queen Elizabeth hospital in Woolwich.

Mark Purcell, spokesman for Queen Elizabeth Hospital NHS Trust, said: "Standing alone is no longer an option. We are financially challenged trusts. If we were to stand alone we would probably fall. We would be taken over by the secretary of state who would probably merge us anyway.

"Queen Elizabeth hospital is doing well in our quality of services, but we have to recognise our finances are still struggling." Some departments in the three trusts have already been merged including finance, payroll and pathology services. A decision on the proposed mega-trust will be taken in January and the merger could take place by April.

An independent probe into Bromley Hospitals NHS Trust's £101 million debt, published in September, found a trail of vague finance reports, serial cash borrowing and casual management.

The Department of Health is considering a plan to take control of trusts classed as "financially challenged" such as the three in south-east London. An administrator would be appointed and the trusts either closed or merged after a four-month consultation.