A hospital trust faces a crisis as it struggles to save millions.

East Sussex Hospitals NHS Trust is almost £3 million in the red. It has debt from last year and is already overspent, meaning it must save £17 million by the end of March to balance its books.

The trust, which runs Eastbourne District General Hospital and the Conquest Hospital, St Leonards, has not ruled out job cuts.

In a letter to staff, acting chief executive David Townsley warned very tough budget decisions would have to be made.

He said the trust had managed to identify £14 million savings from a £220 million budget but there was no guarantee it would be able to make them.

Mr Townsley said: "The trust needs to save £17 million. Even if all planned cost improvements are found by the directorates, all central savings identified by senior managers are realised and the trust breaks even on issued budgets, we will still be £3 million short of this figure.

"Many of the central savings plans are high risk and indeed the trust is £2.8 million overspent at the end of June.

"This cannot continue. The scale of savings needed is daunting and people fear blanket indiscriminate cuts in services and staffing."

Savings decided include cutting expensive agency staff and freezing recruitment to posts that do not directly affect patient care.

Others include reducing follow-up outpatient visits and cutting stays by doing more day surgery.

Mr Townsley highlighted the pressures of bed-blocking, patients stuck in hospital because no nursing or care home place can be found.

It has knock-on effects because routine operations have to be cancelled and patients wait longer in accident and emergency because there are no beds.

Government rules say a hospital trust has a statutory duty to break even every year but East Sussex said it would not be done at the expense of patient safety.

A spokesman said: "We have frozen all job vacancies except those required to maintain a safe level of care. Any job losses will require consultation with staff and unions."

Brighton and Sussex University Hospitals, Royal West Sussex and Surrey and Sussex Healthcare are all seriously in the red.