CHIEFS at Dorset County Hospital have warned staff that it is vital to save £6 million by September or there will be serious financial implications.

The Dorchester hospital has now been in breach of authorisation by independent regulator Monitor since October, 2009.

It is one of only four trusts in the country to have been in such a serious position due to its financial situation.

Bosses are asking staff to come up with suggestions for cuts while dramatically cutting agency and bank staffing hours.

Chief executive Jean O’Callaghan said: “Around 65 per cent of our expenditure is associated with pay costs and the delivery of our cost improvement plan does mean that the current size of our workforce will have to reduce.”

The hospital needs to make £12million in savings this financial year and has a deadline of September to get halfway there and make good progress.

Hospital chiefs are also trying to cut 30 beds throughout the hospital – which is the size of a ward.

The executive team is working closely with Monitor.