MALVERN Hills District Council could go into partnership with South Worcestershire Primary Care Trust to build the new Malvern hospital.

The PCT has already said that there is little funding available for the project and that it will need to find a partner from the public or private sector.

Now council leader Tom Wells has suggested that MHDC could borrow capital Government funding available to local authorities, to become a partner.

MHDC would pay for the construction of the hospital, leaving the PCT to fund the operation. The council could then recoup the loan in rent from the PCT. The move could provide a cheaper alternative to a Private Finance Initiative, meaning more funds are available for extra beds and even a minor injuries unit.

Coun Wells said: "The district council is doing all it possibly can to help provide the hospital that we deserve.

"If this offer helps to reduce the ongoing costs of the hospital by reducing the capital repayments, then it's worth some exploration."

A special meeting of MHDC is to be held at Priory Lodge Hall at 6pm on Wednesday (February 16) to discuss the suggestion.

In Pershore, Wychavon District Council took part in a similar scheme to fund the building of the town's new hospital, although it used money from its own reserves.

Mike Ridley, executive director of the PCT, said the capital cost of the hospital was likely to be about £10m. The sale of the existing community hospital could raise about £1m and Mr Ridley said this would probably be used to buy equipment.