COUNTY hospital chiefs have seen a massive financial turnaround after being named as the trust with the second biggest deficit in the country for 2003/04.

Figures announced by the Audit Commission revealed Worcestershire Acute Hospitals NHS Trust had a £12.8 million deficit, second only to Mid Yorkshire Hospitals with a deficit of £18.6 million.

But a spokesman for the trust, which incorporates Redditch's Alexandra Hospital and Worcestershire and Kidderminster Royal Hospitals, said there had been a massive improvement thanks to the hard work of staff.

"We have managed to balance the books in 2004/05, subject to final approval from our auditors, we may even have a small surplus. Given where we were 12 months ago this is quite a remarkable turnaround."

The spokesman said the achievement was an even greater because at the same time as improving its finances, the trust has also treated more patients than ever before and brought waiting times down, hitting some demanding targets months ahead of national deadlines.

"What we did last year was the vital first step in our journey to securing the long-term security of our hospitals and the rest of the Worcestershire NHS. But we still have a long way to go and we face a massive challenge in breaking even this year as well. We are going to take a long hard look at how to guarantee the provision of safe, affordable health services in Worcestershire."

External help will be brought in to look at all the options for improving the trust's financial position. This work should be completed by the end of September and will be followed by a consultation, this will allow for the implementation of any changes next year.