BUILDINGS may have to be sold to bail out the cash strapped Royal Bolton Hospital.

The hospital is facing a debt of more than £2 million from the last four months alone. On top of that is a £3.7 million overdraft that has already been deferred for a year and must be paid by April, 2006.

A freeze has been put on all departments buying any furniture, fittings or new equipment until March.

The blame is being put on managers not controlling their budgets properly. The drugs budget alone was overspent by £323,000 by the end of August.

And bosses have said that assets may have to be sold by the Bolton Primary Care Trust to dig the hospital out of trouble.

It is not known which buildings would be considered but it will not be the Hulton Lane Hospital site -- because that is already included in the Bolton health economy's financial recovery plan.

The Greater Manchester Strategic Health Authority has already helped the hospital once before by defering the overdraft but it cannot bail the hospital out again because the authority itself is in debt.

Individual hospital departments running a budget with a surplus are being asked to contribute cash. It is hoped the measure will save the hospital £770,000.

This year, the hospital has to make £6.2 million worth of savings and, so far, £4 million has been achieved.

Acting finance director Mike Owen said: "The £2.2 million worth of savings we have to find will have to come down to individual departments with individuals having to take responsibility until the end of the year. I have made a prudent decision to estimate that a quarter of those departments with surplus monies will deliver.

"We have got to look for radical solutions but to deliver these, we have got to make sure we are not left with a shortfall for next year."

Planned savings from last year, called Cash Releasing Efficiency Savings (CRES), have not worked.

Mr Owen said: "CRES was brought in to help the financial situation but it has not worked. It has not been a waste of time but has been disappointing."

Bolton South-east MP Brian Iddon said: "This issue will be top of the agenda when the Bolton MPs meet with Mr Fillingham. If he can show us that the hospital has really tried to cut corners without affecting patient care, we can take the case forward to the Commons. But it seems to me not everyone in the hospital is trying."

A Bolton Primary Care Trust spokesman said: "We are committed to working in close co-operation with the hospital to try to achieve a break-even position but it is going to be a difficult and challenging task."

FACTFILE

lThe Trust has an annual budget of £138 million. At the end of August, it was showing a £2.4 million deficit

lA huge part of the deficit is being put down to salaries, which are overspent by £265,000 so far

lThe Trust has to deliver £6.2 worth of savings this financial year and £2.2 million of that is still outstanding.

lEven if the books balance at the end of March, the Trust still has a £3.7 million overdraft to pay next year.