More than £130million of debt carried by Southport and Ormskirk Hospital NHS Trust has been written off by the Government.
Ministers have decided to help health Trusts become more financially secure as they fight the coronavirus outbreak.
They have now chalked off a combined debt for Southport and Formby District General Hospital and Ormskirk District General Hospital of £130,542,000.
More than half a billion pounds of historic debt at hospitals across Merseyside, a total of £531,992,000, was voided.
The package is part of the government’s announcement earlier this month that more than £13billion of NHS was to be scrapped.
Health Secretary Matt Hancock said at the time: “As we tackle this crisis, nobody in our health service should be distracted by their hospital’s past finances.
Seven more Covid-19 deaths at Southport hospitals taking total to 62
“The £13.4billion debt write-off will wipe the slate clean and allow NHS hospitals to plan for the future and invest in vital services.
“I remain committed to providing the NHS with whatever it needs to tackle coronavirus, and the changes to the funding model will give the NHS immediate financial certainty to plan and deliver their emergency response.”
NHS chief executive, Sir Simon Stevens, said: “We’ve advocated for and support this pragmatic move which will put NHS hospitals, mental health and community services in a stronger position – not just to respond to the immediate challenges of the global coronavirus pandemic, but also in the years ahead to deliver widespread improvements set out in our NHS Long Term Plan.”
Under the new rules, set out in a letter to all NHS trusts, should hospitals need extra cash this will be given with equity rather than needing to borrow from the government and repay a loan.
Southport & Ormskirk NHS Hospitals Trust has been approached for comment.
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