AS local health chiefs struggle to address a £6.2m deficit, the chairman of the North Hampshire Primary Care Trust, Dr Tony Ludlow, has challenged the government to find a more workable funding formula for the NHS.

In an hard-hitting appeal, made at TuesdayÕs meeting of East Hampshire District CouncilÕs north west area community committee, Mr Ludlow sought to highlight what he felt to be Òa huge inequality in the health serviceÓ.

In trying to address the problems of social and economic inequality within the north/south divide politicians had, Dr Ludlow said, caused serious problems for southern health authorities who were underfunded because they were viewed as Òhealthy and wealthyÓ. And, in his view, it was a formula which did not work.

Dr Ludlow spoke out in support of NH Primary Care Trust chief executive Gill Duncan, who had the unenviable task of explaining why north HampshireÕs health service was undergoing yet more change and was having to axe yet more beds.

It was a multi-faceted problem brought about by under-funding and a government-led initiative to ÔShift the Balance of PowerÕ within the NHS from local health authorities to hospital and newly formed primary care trusts.

In an exercise designed to save £100m, the country is to see a reduction in the number of health authorities from 90 to 30 with four regional directors of health and social care overlooking London, the South, the Midlands and the North.

In north Hampshire the plan is to amalgamate existing authorities to form a a new health authority to serve the 1.8 million people living in Hampshire and the Isle of Wight.

To come into effect by April 1 next year, this proposal is out to public consultation until the end of November.

In North Hampshire, having battled last year with plans to address a £10m deficit under the guise of ÔMeeting the ChallengeÕ, the local service was still faced with a £6.2m shortfall - this despite new government money which had been allocated for specific needs and had not helped to pay off the underlying overdraft.

Progress had been made. There had been reductions in NHS administration costs and trusts had been disbanded; new beds had been opened at the North Hampshire Hospital thanks to national funding, the demands of winter coped with Òon a wing and a prayerÓ and key targets met.

But waiting lists were still too long.

ÒThe bottom line for us is that we in Hampshire are still £6.2m in debt with North Hampshire Hospital Trust and NH Primary Care Trust responsible for a £3.6m share.

ÒIn addition, we have to deliver the NHS Plan with its 353 targets, to be achieved over the next five to ten years.Ó

In pointing out that ÒYou canÕt flog staff any harderÓ, Mrs Duncan said plans were already in hand to look at Òworking smarterÓ by overlapping skills, reviewing service areas, health provision and patient transport, and making best use of acute and community hospitals.

But the biggest problem facing the area was one of delayed transfer of care or Ôbed-blockingÕ - mainly by elderly people waiting to transfer to nursing or residential care.

The crisis is so acute that Hampshire County Council is to receive £2.4m from the government (reported in last weekÕs Alton Herald) to help social services in the provision of extra nursing home places, intermediate care beds and intensive care packages that help older people to live at home.

According to Mrs Duncan, at any one time about 100 beds in north Hampshire are blocked, resulting in longer waiting times and cancelled operations.

It is believed that more than 50 per cent of patients could be cared for in a different way and plans are afoot to save £0.5m by redressing intermediate care provision.

This could result in the closure of 24 beds at theNorth Hampshire Hospital and 16 additional beds at Chase Hospital, Bordon.

Mrs Duncan warned that: ÒIn order to begin we have to start somewhereÓ and this was it.

While as yet unscathed, over the next two years the focus would, she said, be on the best use of Alton Community Hospital and on the services provided there.

Changes are also to be made to the orthodontic service with a proposal to merge forces with the Royal Surrey County Hospital at Guildford, aimed at pooling resources and cutting costs.

Public consultation on proposals to redesign intermediate care and develop new partnerships in orthodontics began on Monday and will continue until the end of January next year.

r A public meeting, hosted by North and Mid Hampshire Health Authority, will be held at Alton Community Centre, starting at 7 pm on Monday, November 12.

It will provide one of several opportunities for local people to Òhave their sayÓ.