Mental health services in north Essex face cuts of up to £4 million.
Beds could go at key in-patient units like The Lakes, in Colchester, and Peter Bruff ward, at Clacton Hospital, as NHS bosses aim to plug budget black holes.
North East Essex, Mid Essex and West Essex primary care Trusts (PCTs) are all reviewing the services they commission from North Essex Mental Health Partnership NHS Trust.
As well as Colchester and Tendring beds, areas under "particular scrutiny" include home visits and long-term care for elderly patients.
The blow comes hard on the heels of evidence that, already, too little is being done to help people suffering from mental illness, which affects one in four of the UK population.
An official study revealed an average of 52 people a year - one a week - are killed by violent mental patients released into the community.
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