Hospital's '£6m dispute' resolved

The hospital treats more than 400,000 patients a year

An NHS hospital has resumed normal treatment after resolving a pay dispute with a care trust which saw patients being turned away.

The Royal Bournemouth Hospital had claimed it was owed more than £6m following operations carried out after referrals from the area's PCT.

The PCT said it was paying for patients, but non-urgent patients had to be treated elsewhere.

A financial settlement was reached on Monday which removed patient limits.

The Royal Bournemouth Hospital treats more than 400,000 patients a year, with payments for GP referrals paid by the PCT.

Tony Spotswood, Royal Bournemouth Hospital foundation trust chief executive, said: "The foundation trust is extremely pleased that the dispute for 2005/6 has been settled and that both organisations have avoided the costly process of legal arbitration."

After months of negotiations, the PCT and Royal Bournemouth Hospital have announced plans for an agreed contract for 2006/7.

Debbie Fleming, Bournemouth Primary Care Trust chief executive said both organisations could now focus "on improving services for local people."