The Trust administrator claims the £204m debt will rise to £447m if proposed changes are not implemented.
University Hospital Lewisham is the biggest casualty of the shake-up - set to lose both A&E and maternity. @londontonight
Draft recommendations have been published following the administration of South London Healthcare NHS Trust.
The administrator, Matthew Kershaw, has confirmed there will be job losses, as a result of the trust's spiralling debts.
Lewisham Hospital looks likely to lose its Accident and Emergency and Maternity wards.
A period of consultation is due to begin on the 2nd November, which will end on the 13th December. A report with final recommendations will be delivered in January 2013.
More top news
Pregnant woman who was labour has had her "phone snatched while calling for and ambulance to hospital".
It will be increasingly cloudy this evening, with sporadic outbreaks of rain or drizzle spreading in during the first half of the night.
A derelict north London garage has gone on sale for £360,000 - more than the cost of a flat on the same road.