BISHOP Auckland hospital managers hope to avoid losing 28 more beds by saving money in other ways, an NHS memo has revealed.

A discussion paper seen by The Northern Echo reveals the hospital's directorate of medicine has been asked to close 28 rehabilitation beds in August.

But the directorate is trying to find alternative ways of saving money, and saving the beds.

The author of the discussion paper, dated last month, suggests four alternative cost-saving measures.

Two wards - three and nine - have closed at Bishop Auckland General Hospital this year.

John Saxby, the chief executive of the NHS Trust which runs the hospital, said earlier this month further bed cuts were "more than likely".

However, David Fryer, of the Save our Hospital action group, said: "We are shocked to hear of the possibility of more bed cuts. These planning discussions, about what is needed at Bishop Auckland hospital, should have been taking place five years ago."

The hospital's rehabilitation services for elderly and stroke patients and patients with neurological conditions are currently provided by three nursing teams - two in inpatient units and one in a day unit.

The discussion paper suggests saving money by merging the three nursing teams; bringing more rehabilitation work to the hospital; putting more rehabilitation work into community hospitals; or cutting the number of days the day unit is open.

Edmund Lovell, a spokesman for the NHS Trust, said: "The trust has been quite open about the need to improve its efficiency, including bed reductions where necessary. This paper is a discussion document looking at possible alternatives to proposed future bed reductions at Bishop Auckland."

The paper will be discussed by ward managers, stakeholders and two hospital committees before any changes are agreed.

Bishop Auckland General Hospital, which opened in 2002 at a cost of £67m, deals with 123,500 patients a year and is rated as offering a good quality of service and good use of resources.