BOSSES at the Countess of Chester Hospital are inviting staff to apply for early retirement in an attempt to overturn a £5m deficit.

The move comes at the same time as an anonymous correspondent claims chief executive Peter Herring has been award 'the greatest pay increase in the history of the hospital'.

All staff aged 55-60, who are members of the NHS Pension Scheme and not applying for retirement benefits on a personal basis, are invited to apply.

The funding black hole has been blamed on NHS inflation, staff pay reforms and rising medical negligence insurance. A high uptake of voluntary retirements could stave off the need for redundancies, which hospital chiefs say will be a last resort.

In a letter to employees, David Wood, Director of HR and Corporate Services, writes: 'As you will be aware from various recent communication, the Trust has embarked upon a series of actions which are aimed at avoiding a financial deficit in the new financial year.

'As part of the action plan, I am inviting all staff, who meet a number of conditions, to express interest in voluntary retirement with early permission.'

Someone claiming to be a hospital employee has blasted the proposal in an anonymous letter to the Chronicle . The writer said: 'No job cuts according to Peter Herring, the Chief Executive.

'This makes you furious when the very same day, voluntary redundancies are asked for in a letter to us employees asking for early retirement with maintained pension.

'Redundancies from among experienced nurses and doctors will affect patient care.'

The letter writer's claims that Mr Herring has taken the 'greatest pay increase in the history of the hospital' was branded 'ridiculous' by the Trust, which says senior managers received just a 3.225% rise in 2004/05, with Mr Herring's salary now £105,000.

In a team brief about the forthcoming budget, Mr Herring writes: 'Whilst the hospital has benefited from a significant amount of additional investment in recent years, which has enabled us to develop new services, facilities and increase staffing levels, in the next financial year our running costs are set to significantly exceed our income, unless we take action to reduce them.'

He adds: 'The management team and Board of Directors have started to explore ways in which we can bridge this gap, currently estimated to be in the order of £5m, whilst ensuring essential services to patients are not affected and the impact on staffing is minimised.

Lorna Jones, a spokeswoman for the hospital, said: 'Little credence can be given to any anonymous letter and the main points presented in the one recently sent to the Chronicle are wholly inaccurate and misrepresentative.'

She said applications for early retirement were made 'without obligation on either party and there must be mutual agreement.'

Mrs Jones added: 'No post has been selected for redundancy - and the Trust has a duty to consult with staff and their representatives should this ever become necessary in the future.'

Last year the Countess became one of the country's first NHS Foundation Trust with the promise it would lead to rapid improvements in services.

To gain authorisation they had to convince the regulator that they would be financially sustainable and locally representative as foundation hospitals.

robdevey@cheshirenews.co.uk