THE boss of the Countess of Chester Hospital has welcomed a £20m package to bail out two cash-strapped NHS funding bodies.
Peter Herring, chief executive of the hospital, feared his Trust would have to make year-on-year cuts because
Cheshire West and Ellesmere Port and Neston PCTs were contemplating £42m savings.
Mr Herring said: 'Everybody within the local health economy welcomes the support provided by the Strategic Health Authority in reducing the deficit.
'It is important the various health and social care organisations work together effectively to ensure the level and quality of patient care is not adversely affected in recovering the remaining deficit and that services are not destabilised.'
The package was announced by the Cheshire and Merseyside Strategic Health Authority. It means the two PCTs will have historic debts cancelled but make sure the budget is balanced by the end of the financial year 2007-2008.
It follows behind-the-scenes lobbying of health ministers by Cheshire Labour MPs.
However, the PCTs say their financial recovery plan is still in place, which suggests the Countess must still find £8.3m savings. But the hospital should now avoid the prospect of having to make year-on-year cuts into the future.
Jacqui Harvey, chief executive of the two PCTs, said: 'I am pleased we have been given this support. However, it does not mean we can be complacent because the support package depends on us achieving approximately £13 million in savings by the end of this financial year, allowing us to achieve financial balance by the end of 2007-2008.
'We intend to improve efficiency and look at whether we can provide patient care in a better way, such as whether we have the right balance between hospital care and care provided outside.'
The size of the deficit currently faced by the PCTs is a combination of the debt they have accumulated over the past four years, as well as predicted overspend.
The Cheshire West PCT in particular was slammed by the Audit Commission report for 'having not taken steps to manage its business'.
SHA Director of Finance Neil Large said: 'The SHA acknowledges the scale of the financial challenge facing the PCTs and the efforts being taken to resolve it. The support package will enable them to deliver an achievable programme of recovery while maintaining essential patient services.' david.holmes@cheshirenews.co.uk
