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
Chelsea won the first domestic trophy of the season thanks to a 2-0 win over London rivals Spurs at Wembley.
An online video showing a naked man apparently falling down the outside of Buckingham Palace has split opinion online - is it a hoax?
A new market has started up in London championing the production of sustainably produced, local food.