HEALTH chiefs at Worcestershire's hospitals have managed to balance the books.

The trust that runs Worcestershire Royal, the Alexandra in Redditch and Kidderminster Hospital ended the 2006/07 financial year in the black, with £53,000 more coming in than it spent.

Also, as of Saturday, March 31, the trust had reduced its underlying deficit - which has been rising since it was formed in 2000 - from £20 million to £4.5 million.

However, the trust must still make savings of £12 million in 2007/08 as well as wiping out the £4.5 million debt.

Graham Bennett, the interim director of finance at the trust, said: "This represents a significant challenge, which will again require full commitment to drive for all possible efficiencies and other appropriate savings."

The Government designated the trust a turnaround trust' in April 2006, which meant its books were checked by the Department of Health every two weeks due to the financial crises at the time.

It is no under that classification, but bosses have decided to keep an internal turnaround team to focus efforts on balancing the books.

The trust board will meet today to discuss the financial performance in full.