Epsom and St Helier Hospital Trust is ranked as one of the most financially unviable to achieve foundation status in the UK, according to a new report.

A National Audit Office report out last week outlined 20 NHS trusts which are clinically or financially unviable to meet a 2014 Government deadline for all NHS trusts to achieve foundation status.

The Foundation status which was announced in 2003, is designed to give hospital trusts greater local accountability and greater financial freedom from central government.

Now Epsom Hospital and St Helier hospitals, which are set to split, only option appears to be merging with other hospitals in order to make the government deadline. St George's Hospital in Tooting is expected to launch a bid to join forces with St Helier Hospital in the coming months, meanwhile Ashford and St Peter's Hospitals NHS Foundation Trust have expressed an interest in merging with Epsom.

Both hospitals are now required to formally submit a bid to merge with their chosen hospital by 11 November 2011.

Geoff Martin, chairman of pressure group London Health Emergency, said: "Staff and patients are sick of seeing Epsom and St Helier portrayed as some kind of basket case when all of the problems at the trust are down to poor political decisions and appalling local management.

"The fear is that this latest report will jack up the attack on our front line services and we need to stand united to resist the threat to maternity and accident and emergency that is hurtling towards us."

Sutton and Cheam MP Paul Burstow, Minister for Care Services, said: "The NAO report gives fresh impetus to the case for St Helier joining up with another hospital to secure its future."

"It should be clear to local NHS bosses that any loss of key services will not be tolerated by the local community."

Mr Burstow said he was disappointed the Royal Marsden nor Kingston Hospitals had not come forward with a merger bid for St Helier Hospital.

Chief Executive for Epsom and St Helier University Hospitals, Matthew Hopkins, said: "Although we are not financially viable in the long-term, we invested more than £10 million on improving our services, buildings and other infrastructure last year, with a similar amount committed for 2011-12.

"In order to achieve foundation trust status, Epsom and St Helier hospitals will need to de-merge, and remerge with other NHS organisations."