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Last Updated: Thursday, 25 May 2006, 18:16 GMT 19:16 UK
Trust debt 'bigger than thought'
Royal Cornwall Hospital
The trust reported a deficit of 8.1m in March
Health managers admitted on Thursday that the Royal Cornwall Hospitals Trust is more in debt than first thought.

In March the trust, which runs the Royal Cornwall Hospital in Truro, reported a deficit of 8.1m and announced that 300 jobs would go.

The trust now says the overspend is greater but will not release a figure and declined to comment on speculation it could be as high as 18m.

Auditors are looking at the accounts and will report in two weeks.

Price Waterhouse Cooper is working with the trust to produce a plan which will help it pay off the debt and help to balance the books in the future.

St Ives Lib Dem MP Andrew George said: "I was sceptical that the deficit was as little as 8.1m at the time the announcement was made in March.

"Sources I have heard from suggest we're talking about something which is quite substantially more."




BBC NEWS: VIDEO AND AUDIO
The BBC's Marcus Wraight reports on the hospital's debt



SEE ALSO:
Government challenged on hospital
14 Mar 06 |  Cornwall
Cuts blamed on 'unfair' funding
08 Mar 06 |  Cornwall
MP's plea on hospital job losses
08 Mar 06 |  Cornwall
Health trust plans 300 job cuts
07 Mar 06 |  Cornwall


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