HOSPITAL chiefs have admitted they will have to cut jobs as part of a major cost-cutting exercise.

Lewisham Hospital has already saved around £1.5m after cutting 20 mainly administrative and management posts.

But the hospital, in Lewisham High Street, says more job losses and ward closures are likely as it strives to become a "more efficient" organisation.

The cuts are all part of a strategic review currently being undertaken by the hospital, which last year revealed a deficit of £5m.

In last month's issue of its internal newsletter, hospital chief executive Claire Perry said the review could allow it to "reduce by two or three the number of wards".

Conservative mayoral candidate James Cleverly, who is standing in the elections in May, blames the Government for the cutbacks.

Mr Cleverly, whose mother worked as a midwife in Lewisham for 30 years, also admits he feels sorry for hospital bosses.

He said: "The Government is giving money to hospitals but it is coming with strings attached.

"There is too much red tape. The Department of Health is always crowing about extra investment but it's tying the hands of those who spend the money."

Mr Cleverly is now calling for a full public consultation, asking patients how they feel the hospital could save money.

He added: "I would like to see patients given a say before they rush into job losses. They might suggest savings could be made elsewhere."

The hospital now gets more cash from the Government but says "the cost of delivering improvements has been greater than the extra resources available".

A spokesman said: "We deeply regret we are having to find savings from our workforce at the moment.

"We have always been very open about our situation. We need to make the hospital more efficient than we currently are as an organisation."