HEALTH chiefs are examining ways of cutting the £600,000 building and running costs of creating a huge multi-million pound scheme to replace Victorian wards at Burnley General Hospital.

And private cash may have to be used to help foot the £13 million bill to build the long-awaited Phase Five scheme.

Members of East Lancashire Health Authority are working with Burnley Health Trust to look at ways of reducing the £627,000 a year running costs of the project.

The scheme, exclusively revealed by the Lancashire Evening Telegraph in May, will involve the demolition of seven Victorian "Nightingale" wards with 143 beds, to be replaced by five wards of 28 beds each.

It would also provide better access to important clinical centres including intensive and coronary care and diagnostic facilities and give the hospital ultra-modern patient services for the new millennium. The scheme was the third cheapest of five options considered by Trust bosses and the best value for money.

A report to the health authority, which meets on Wednesday, says the Trust wants to get the backing "in principle" of the health authority before going to the North West NHS executive for approval.

The report said it was highly likely that the executive would subject the scheme to the Private Finance Initiative, which aims to attract private money to help with capital costs.

Bev Humphrey, the health authority's director of strategic planning, said: "The aim is to attract capital investment from the private sector to contribute towards the cost of building the scheme.

"In return the investor would want something out of it, running the catering facilities for instance." Mrs Humphrey also said there were reservations over the running costs of the scheme, which would start in 2002.

Health authority members are being asked if they want to approve the scheme in principle with the condition that efforts continue in cutting running costs.

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