HEALTH chiefs are expecting York Hospital's £2 million cash shortfall to break even today - in what they said was the "most challenging" year in the organisation's history.

The hospital's budget was pushed into the red while York Hospital's NHS Trust worked hard to reduce waiting times, build new facilities and treat more patients.

Chief executive Jim Easton admitted it had been "tough" to balance the books while meeting Government targets on waiting times and improving patient care.

He said: "This has probably been the most challenging year the organisation has ever faced because we've been trying to reach all these terrifically important targets and trying to grow and invest, and balancing all that is a real challenge for everyone.

"It looks as though we've done a good job in meeting all these demands."

At the end of last year, Mr Easton told the Evening Press he would be keeping an eye on internal spending and taking "sensible measures" to minimise expenditure.

He said some staff training had been postponed, but said patient care had not suffered.

The accident and emergency department is currently seeing 99 per cent of patients within four hours, above the Government target of 98 per cent.

Targets to make sure patients do not wait longer than nine months for inpatient treatment and the wait for outpatient operations is no longer than 17 weeks have also been met.

Mr Easton said the hospital was among the 12 per cent lowest funded in the country.

But he said a new system would soon iron out the shortfalls, boosting their £140 million budget by more than £10 million.

He said: "There is a need for a fair funding system that gives everyone the right amount of money. We do not know how much we will get or when we will get it, but it should be in excess of £10 million."

Earlier this year, Selby and York Primary Care Trust (PCT) revealed debts of £6 million.

Chief executive Jeremy Clough said the PCT would have to make difficult choices over the next two years.

He blamed the shortfall mainly on the trust's commitment to develop enhanced patient care and unexpected high levels of patient care in hospitals in York. He said the trust had also invested an extra £5.8 million on service development.

Updated: 10:07 Friday, April 01, 2005