Gloucestershire Hospitals NHS Foundation Trust in the UK said it plans to save £27–30m ($42–47m) in the financial year 2010/11.
The decision was taken following government plans to improve the economy by reducing public sector spending for the foreseeable future, the trust said.
As part of its saving plans, the trust decided to close 150–200 beds across the trust, with the first phase beginning from 1 April.
The first phase includes the closure of 95 beds in Ward 2A, Acute Care Unit B and Neurology at Gloucestershire Royal Hospital.
In addition, the trust has planned for better arrangements for discharging patients, reducing the number of people who fail to attend their outpatient appointments and making full efficient use of outpatient clinics and theatre sessions.
Gloucestershire NHS Chief Executive Dr Frank Harsent said that the trust has no choice but to make these savings.
"Our staff will be pulling together to provide the most efficient service possible while also continuing to protect the quality of our services and the wellbeing and experience of our patients, which remains one of our highest priorities," Harsent said.