BOSSES at a North-East hospital faced with a million pound compensation bill have decided not to appeal against the award.

Last month, an employment tribunal ruled that South Tyneside NHS Foundation Trust racially discriminated against Dr Feyi Awotona and dismissed her unfairly.

The consultant was sacked by the South Shields hospital trust in December 1998 for what the trust alleged was gross personal misconduct.

But Dr Awotona, from Newcastle, said she was sacked after she raised concerns about levels of care at South Tyneside District Hospital.

She took the health trust to an empoyment tribunal and, in March 2003, it ruled in her favour.

She described how she was victimised, racially harassed and eventually sacked because of the comments she made about levels of care.

Dr Awotona returned to the trust last year after the tribunal ordered it to reinstate her. But in May she quit her post as consultant obstetrician and gynaecologist.

It has been estimated that the legal battle has cost the trust more than £2m.

The trust's board of directors said that after considering the tribunal document and taking legal advice, they had decided it would "be in the best interest of all concerned, not to incur further legal costs, but instead to move on and concentrate on further developing its outstanding reputation as one of the leading trusts in the country".

Chief executive Lorraine Lambert said: "We remain shocked and disappointed at the scale of the award made to Dr Awotona, particularly as she was reinstated to her post and then chose to leave. However, it is important that we bring this matter to a conclusion and put all of our efforts into providing the very best services for our patients."