An urgent meeting has been held after the health trust in charge of the Royal Lancaster Infirmary announced it has serious financial issues.
University Hospitals of Morecambe Bay NHS Foundation Trust (UHMBT) said "if we do nothing different, we won’t have the financial resources to see out the rest of this financial year, and are at risk of not having the required money in the bank by January 2026 to pay the things we need to".
The trust said this was "leading to some very serious decisions around things like what beds we can provide, what amount of elective activity we do, and what we can and can’t pay for".
It now plans to reduce the number of beds at the RLI - and at Furness General Hospital in Barrow - in order to save money.
The 24-bed Ward 23 at the Lancaster hospital will be shut, saving £443,000 in 2025/26.
Ward 23, which is located in Medical Unit 2 at the hospital, provides general medical care and treatment for patients, and focusses on care for elderly people.
The trust said that Ward 23 is a "recently rehabilitation ward that is occupied by patients who do not meet the criteria to reside and whose care will be better served out of a hospital environment".
They said "this change will likely require the NHS Service Change process so we can't confirm timings at this time".
They also plan to cut 18 beds across three large wards at the Barrow hospital, and close four further rarely-used overnight beds. Consultation is under way with phased closures due to start on January 21.
The trust is also working to increase 'virtual ward' beds by 25 to 73 by March 2026, which enables patients to receive hospital-level care in their own homes, as well as faster discharge processes.
The trust also said that no services are being removed or reduced, and no jobs will be lost.
"Like other NHS providers in Lancashire and South Cumbria, we are facing a significant financial challenge," said a trust spokesperson.
"We know that right-sizing the bed base can positively impact on how our hospitals run and ensure that patients are only in hospital when they absolutely need to be.
"The simple fact is that whilst the plans to reduce the bed base are the right ones, we ideally wouldn’t be doing it during winter with the operational issues this period brings.
"However, we know we aren’t operating in an ideal world and given the financial challenge, we had to ask ourselves what need to be true for us to reduce these beds safely - even at this time of year.
"Our clinical and operational experts have worked up plans that mean that we are now able to move forward with reducing our bed base at both the RLI and FGH.
"The actions that have contributed to this position are: significant work with partners to reduce the number of patients Not Meeting the Criteria to Reside (NMC2R) from a chronic number of around 170 to a sustained level of around 130.
"These patients should have their needs met in an appropriate setting which is not a hospital bed; increasing the number of virtual ward beds by 25 beds to a total of 73 by the end of March, and a proactive drive to increase the number of suitable patients referred and accepted to a virtual ward.
"(Also) a structured improvement programme that will improve Board Rounds and Criteria-led discharge - all elements that will improve flow through our hospital; worked effectively with teams in the trust and with partners in local authority to significantly reduce delays for patients requiring therapy or reablement; opening of additional intermediate care beds in South Cumbria for patients that need ongoing therapy or rehabilitation support."
The trust said that "patient safety remains our top priority and we will closely monitor the impact and reopen beds should patient or colleague safety be compromised.
"These decisions are incredibly difficult, but they are essential to protect the long-term sustainability of local NHS services."
Lizzi Collinge, MP for Morecambe & Lunesdale, today met Karin Smyth, health minister, alongside Michelle Scrogham, Barrow-in-Furness MP, to discuss the ongoing financial difficulties at the trust.

“My constituents are understandably concerned about recent announcements by UHMBT about their financial deficit and measures being taken to tackle it," said Ms Collinge.
"I have spoken directly with the trust about this and continue to receive regular updates on the situation.
"NHS trusts cannot continue to operate in deficit, and it is right that difficult decisions are addressed openly and responsibly.
"My foremost concern is how any necessary changes are implemented while ensuring patient safety is fully protected. As a member of the All-Party Parliamentary Group on Patient Safety, this is a matter of particular importance to me and will remain a key focus of my work and conversations with the trust.
"It’s a fact that too many people are kept in hospital when they could go home with the right support package, so this has to be a focus of the NHS alongside local councils. The deficit can only be tackled long-term by moving towards more preventative work and making sure people can get back out of hospital quickly.
"I have told the minister that whilst funding partially recognises the challenges faced delivering over such a large area, it does not fully cover the extra costs.
"To me, this means that the trust should be given some more leeway over deficit reduction whilst it does the right things for patient care in a planned and controlled way. Change implemented quickly as a result of financial pressures increases the risk of getting it wrong.
"We all recognise that the NHS remains in a fragile position following some of the most challenging years in its history.
"The government is undertaking significant work to improve the state of our NHS, including reducing waiting times and delivering over five million additional appointments for patients.
"Ambulance waiting times for stroke and heart attacks have improved too but this doesn’t mean there isn’t a huge amount of work still to do.
"I want to pay tribute to the incredibly hardworking staff at UHMBT, who go above and beyond every day to support our community. I have strongly encouraged the trust to ensure staff are kept fully informed and properly consulted throughout this process.
"I will, of course, continue to engage closely with the trust and keep a careful watch on developments as they progress.”
The UHMBT runs services at the RLI, as well as Furness General, Westmorland General Hospital in Kendal, and in Morecambe, Ulverston and Millom.
Meanwhile, on Tuesday the RLI was put under the highest level of alert for the second time in a week due to huge demand.

The trust escalated the hospital to OPEL 4 - the highest level of internal escalation - after previously also doing so on December 29.
"The decision to declare RLI OPEL 4 has been made due to the high demand we are seeing at RLI," said a trust spokesperson.
"The level of patient acuity is high and we are experiencing a reduced number of discharges and step downs to virtual wards to help with patient flow.
"The safety of our patients and colleagues is vital; and the decision to declare OPEL 4 at RLI acknowledges that we were at a point where we cannot continue in the way we are due to the increased risk of harm."
The trust has asked people to use all alternative options to the Emergency Department.
"Our teams continue to work exceptionally hard; and we would like to reassure our patients and the public that in spite of the challenges faced, essential services remain fully open for anyone who needs them so if you require urgent medical help, please continue to come forward," said the spokesperson.
"The public can help us manage these periods of demand by ensuring they are seeking help from the most appropriate health services, and only attending A&E for serious accidents and emergencies. If you are unwell, visit NHS 111 online for 24/7 advice about the most appropriate care for your needs.
"If you are not contacted directly, please continue to turn up for your appointment. Contact the number on your appointment letter if you are no longer able to make your appointment so it can be reallocated to another patient."
Read more: Morecambe Bay health trust appoints new chief exec - Beyond Radio
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