A NEW NHS hospital is so short of space that talks are being held with a private hospital group to find a way of increasing bed numbers.

The brand new University Hospital of North Durham opened its doors to patients only three months ago, replacing the worn-out buildings of Dryburn Hospital in Durham City.

But the new 450-bed hospital - built as part of the Government's controversial private finance initiative (PFI) to replace its 540-bed predecessor - is already struggling to meet the demand from patients.

Latest figures show that increasing numbers of patients are being referred by local GPs - with 4,517 referred in May alone, an increase of almost 700 over May 2000.

Health bosses have revealed that discussions are under way between North Durham Health Care NHS Trust and the private Nuffield Hospital group with a view to developing a joint public-private development on the site.

If the plans go ahead it could mean the creation of a new unit providing 30 NHS and 12 private beds.

The plan was strongly criticised by Robin Moss, regional officer with the health workers union Unison.

"We always said the new privately financed hospital in Durham did not have enough beds, because of the higher costs associated with PFI. It saddens me to say this but we told you so."

Mr Moss said PFI was shaping up to be a "financial and political disaster" and had paved the way for greater involvement of the private sector in the NHS.

Details of the talks between the North Durham trust and the Nuffield group will be revealed at a meeting of the trust board on Wednesday.

Helen Byrne, a planner with County Durham and Darlington Health Authority, will tell the board that the new hospital's capacity problems is having "an impact on the ability to meet NHS plan targets, particularly in relation to waiting lists and times and trolley waits in accident and emergency."

Mr Moss said the original plans drawn up in the early 1990s called for a 900-bed new hospital but the high cost of PFI had led to bed numbers being slashed.

Despite criticisms the Department of Health insists that PFI represents good value for money and allowed much-needed hospitals to be built sooner rather than later.

Updated: 17.01 Monday, July 9