SOUTH Durham residents say they fear for the future of Bishop Auckland General Hospital after learning that a medical ward could close.

A councillor last night called on hospital bosses to "come clean" over plans for the £67m building, which was built by a private-public partnership and opened in 2000.

Staff on ward three have been warned it could close by March, with the loss of 28 beds.

The trust that runs the hospital has announced it will shed 700 jobs at its three sites, saving £40m.

Garry Huntington, a Sedgefield Borough and Shildon town councillor, said that people wanted to keep services in Bishop Auckland.

He said: "The news about ward three has set the alarm bells ringing. We have lost too many services from Bishop Auckland and it is not what people want.

"It is time we were told exactly what will happen. They should come clean with the public.

"There are all sorts of rumours flying around, including that the hospital could be sold off to the private sector.

"It is a beautiful facility, for which we waited a long time. It is ridiculous that we have a first-class building which is under-used."

Doctors, nurses and patients vowed to fight to save ward three at a meeting last week.

Ian Daley, regional officer with health union Unison, said staff were extremely angry.

He said: "There is a great deal of concern that the huge costs of the private finance initiative are draining funds.

"Our members are absolutely raging about the closure of ward three, but there is also concern about the threat to the whole hospital."

A hospital spokesman said that fewer beds were needed because of changes in the way patients were treated.

People who would once have been admitted to hospital are cared for at home, waiting lists are shorter and medical advances have reduced the length of time patients need to stay on the wards.

He said that any changes would not affect the quality of patient care.