The Ottawa Hospital will cut nursing positions and conduct a review of each of its units in an attempt to find savings in the face of a $19-million budget shortfall.

Restructuring is already underway at the Ottawa Hospital. Cuts include slashing 70 nursing positions through early retirement and leaving several vacant positions unfilled. Some staff will also be reassigned to different jobs.

By law, hospitals in Ontario are unable to carry a deficit.

The Ottawa Hospital is currently looking to cut $20 million from its budget. It's also hoping to receive another $20 million from the province to help balance its books. However, that funding is not guaranteed.

A pilot project called 'Valley Stream' is expected to save the hospital $3.5 million annually, moving seniors into the Valley Stream Manor, a fully-registered, privately-run retirement home. The project will move 50 long-term care patients out of the hospital.

Officials hope the project will help reduce overcrowding at the hospital, which has been faced with major bed shortages and overcrowding in recent weeks.

So far this year, the Ottawa Hospital has been forced to cancel 192 surgeries due to lack of space.

With a report from CTV Ottawa's Kate Eggins