PROPOSALS to slash York Hospital's income by £14 million will be discussed at a top-level health meeting today, The Press can reveal.

Board members of the Selby and York Primary Care Trust (PCT) were due to discuss a financial recovery plan, with proposals to save millions in health spending.

The four primary care trusts in North Yorkshire - which are to merge later this year - face a collective cash shortfall of £51 million.

Among Selby and York PCT's plans is one to spend £14 million less with the York Hospital Trust.

But the hospital's chief executive, Jim Easton, said its own estimates predicted its reduction in income would be far less.

"Clearly, the PCT is trying to produce a commissioning plan in line with its financial recovery plan, and as part of this we understand its measure to reduce spending with hospitals," he said.

"Clearly, a reduction of £14 million would have a major negative impact on our hospital.

"However, it's not yet clear how much reduction in patients coming to hospital will actually take place this year, and our assessment is that there is likely to be much less than the PCT's estimate, and hence the reduction in income to the hospital will also be less.

"The hospital will continue to be paid for the number of patients it treats.

"We will continue to work with PCT colleagues on the medium term recovery plan, including reducing hospital activity over time where this is appropriate, and we hope we can do this in a way that enables its recovery and does not destabilise crucial hospital services."

Last week, The Press revealed PCT plans to reduce the number of patients going to hospital by introducing "thresholds" for various conditions - including hip and knee surgery.

Penny Jones, acting chief executive of the Selby and York trust, said: "The commissioning plan being presented to our board sets out our intentions to secure essential high-quality services for the local health community, while delivering the necessary reductions in expenditure.

"We appreciate that a significant reduction in the contracts we hold with our acute hospital partners will impact on their ability to achieve financial balance, and we have been working with them to see how we can minimise that impact.

"However, like ourselves, they are also fully aware of the need, as clearly set out by the Department of Health, for the North Yorkshire PCTs to return to financial balance within 12 months.

"Achieving these reductions is not something we can do in isolation.

"We are continuing to work with our primary and secondary care colleagues as well as our partners in local authorities to involve them in the process and gain their support in achieving what we know is a very challenging plan."

Updated: 09:25 Tuesday, May 23, 2006