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Lincolnshire's hospitals have made an operating surplus for the first time in years, managers have said.
Two years ago the United Lincolnshire Hospitals NHS Trust axed hundreds of jobs and had a wide-ranging review of services to tackle a £15m overspend.
Results for the latest financial year show a surplus of £1.5m. The trust is still £1m in debt.
Bosses also pointed to reductions in C-difficile and MRSA infections and improvements to waiting times.
Financial plan
The results for 2007/08 saw the number of people contracting C-difficile infections cut by almost half and MRSA infections were also reduced.
Waiting times were reduced in 2007/08 and by the end of March 2008, 96% of all patients were treated within 18 weeks of referral.
Trust chairman David Bowles said: "Every one of our 7,000 staff, in every service, contributed to turning this organisation around.
"Just about every aspect of the hundreds of services we provide across Lincolnshire have shown improvements and we would like to thank our staff for their efforts."
The Trust has also received £11m from the Lincolnshire PCT which, managers said, would help it to meet its target of paying off all its debts by next year.
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