Foundation hospital planning cuts

The hospital is planning to cut beds and operations to save cash

Harrogate Hospital has revealed plans for major cost cuts this year.

The hospital trust, which has forecast a deficit of between £4.2m and £9.2m, said it wanted to cut beds and surgery but had no immediate plans to axe jobs.

Finance Director Jonathan Coulter said it had been hit by local primary care trust (PCT) plans to cut the amount of work given to the hospital by £7m.

"This will clearly have a major impact on the trust's financial position," he said in a report to hospital governors.

The warning comes just over a year after the hospital trust gained foundation status, which was meant to give it a greater degree of financial independence.

Crisis meeting

Now a cost-cutting programme is being prepared that will generate savings of £4.5m.

At best, this would "just about ensure that we achieve financial balance", Mr Coulter warned in his report.

Mr Coulter also presented a "worst-case scenario" which would see an end-of-year deficit of £9.2m - leaving the hospital £4.7m in the red even after the savings.

The board of governors was discussing his report on Wednesday and a final decision on the savings plan will be made by trust directors at a meeting next week.

A disabled rehabilitation unit would also close under the plans.

Top hospital

Harrogate & Knaresborough MP Phil Willis (Lib Dem) raised the issue at Prime Minister's Questions in the House of Commons on Wednesday.

"Harrogate is one of Britain's top performing hospitals but is treated as if it is a failure," said Mr Willis.

"Why should my constituents suffer for failures elsewhere in the system and above all for government meddling?"

He invited the Prime Minister Tony Blair to meet the chief executive, staff and patients at Harrogate Hospital.

He urged Mr Blair to explain why the local hospital, which had delivered on every target set by government, was now planning cuts "simply to avoid financial meltdown".