ACTION is being taken to overcome the financial woes of Dudley's hospital trust which faces losses of almost £8 million this year.

The move follows an investigation by health sector regulator Monitor into long waiting times for A&E patients at Russells Hall Hospital and deteriorating finances.

The Dudley Group NHS Foundation Trust has since made progress to cut the waiting times, but the financial situation has worsened.

Monitor has now secured legally binding commitments that the trust will develop and implement a strategic plan to halt the decline and head for a breakeven point.

Katherine Cawley, Monitor's regional director, said: “Our action is designed to support the trust’s efforts to balance its books. We want Black Country residents using its services to continue enjoying quality care for the foreseeable future.”

The trust has already announced plans to cut its workforce by 400 posts over the next two years to save money.

Dudley Group chief executive Paula Clark said: "We continue with our turnaround plans which are making efficiencies across the system and are now forecasting a £7.5 million deficit close to our plan for the year."

She said the trust was the only one in the Midlands to meet the four-hour A&E waiting target between October and December.

Dudley North MP Ian Austin criticised the Government for doing "nothing to support Russells Hall since Monitor announced their investigation half a year ago".

He added: "Now our hospital is being forced to lose one in 10 staff to deal with an £8 million deficit this year and further cuts down the line.

“Local people know it’s not possible to lose these jobs without an impact on care."