MORE than 400 local medical staff face an uncertain start to the new year as the threat of closure hangs over King Edward VIIÕs Hospital.

A surprise announcement was made on Monday that the hopsital has gone into voluntary liquidation after an American backer dropped out of a multi-million pound partnership deal.

It has sent shock waves through the hospital which was due to celebrate its centenary in just two weeks time and is used by many people from Haslemere and the surrounding area.

With only 14 days to find a new backer, the news could spell the death knell for the King Edward VIIÕs which opened as a TB sanatorium in 1903 and is now known as a national centre of excellence for its cancer and cardiac treatment facilities.

A total of 422 jobs are on the line and hundreds of patients could be transferred to hospitals as far afield as Portsmouth and Chichester if the Midhurst hospital loses its fight for survival.

Following the announcement, chief executive of the hospital, Lin Way, said that she was saddened by the news.

Mrs Way explained that closure would be inevitable unless the provisional liquidator is able to find a private partner for the hospital.

The financial crisis at King Edward VII reared its head after the multi-milliion pound partnership deal with American independent healthcare provider, HCA International collapsed.

HCA International unexpectedly pulled out of the deal after the NHS refused to commit to sending its patients to the hospital in the future and it found out that investment costs for the building were higher than expected.

Trustees at the hospital had been informed that HCA International was no longer in negotiations with management on December 20, but it was decided that staff should be told about the situation after Christmas.

News of the threatened closure is likely to hit the local community hard as the hospital has been a key provider of NHS services since 1948 and has developed state-of-the-art facilities for cancer care.

Mrs Way said: ÒWe are saddened that after 54 years of working with the NHS, and at a time when the government is making much of the role of the independent sector in helping the NHS meet its targets, HCA were unable to obtain any purchasing commitment.Ó

King Edward VIIÕs is one of the largest independent hospitals in the country. It treats private and NHS patients and is a registered charity which uses donations to buy equipment and help fund the costs of building maintenance.

A spokesman for King Edward VIIÕs said the hospital has helped to ease the waiting list pressures in local NHS hospitals particularly for those who have been waiting more than 12 months for certain treatments.

ÒKing Edward VII Hospital complements the NHS by providing services that it cannot provide, or that are under resourced. Examples of this are back pain, health psychology, open heart surgery and special heart investigations and treatment,Ó the spokesman added.

In an official statement Mrs Way said: ÒI want everyone to understand that we have done absolutely everything we possibly can against almost impossible odds to find a way forward and have left no stone unturned. We will continue to fight and the appointment of the provisional liquidator gives an opportunity to find another partner or way forward,Ó she added.