A HOSPITAL chief was forced to take out a bank bridging loan to pay the wages of doctors and nurses because of a cash crisis.

Len Fenwick, chief executive of Newcastle Hospitals NHS Trust, blamed the situation on debts run up by primary care trusts which have made use of Newcastle's services.

He has claimed Durham primary care trusts owe £2m, and the debt could lead to cuts in services if they do not settle up. He said the current situation would not lead to any job or service cuts.

Primary care trusts (PCTs) across the region are commissioning more services from the Royal Victoria Infirmary, Freeman and General Hospital. So far, activity has increased by four per cent compared to last year and the hospital trust faces huge drug costs.

Mr Fenwick said: "In essence, it is about recovering the cost of the services."

There are concerns that the hospital trust could face a £7m overspend by the end of the year.