A SQUEEZE on hospital services and the escalating costs of insurance against claims are forcing a cash clampdown at Morecambe Bay hospitals.

Health bosses must save cash between now and the end of March - or the Morecambe Bay Hospitals Trust could end its financial year £5 million in the red.

But they promise that patient care at the Royal Lancaster Infirmary and other hospitals in Kendal and Barrow will not be affected.

Morecambe Bay Hospitals NHS Trust chief executive Ian Cumming says the year has been difficult despite extra government cash.

Services to patients cost more than anticipated and several improvement projects fell within the same financial year. On top of that, demand for emergency treatment was high and an older and subsequently frailer population needed more hospital treatment than anticipated.

And yet another drain was the premiums the trust has had to pay for insurance against medical negligence cases - which have soared from £1.4 million to £2.8 million this year.

Mr Cumming says this was not because of increased claims against the trust but an increase nationally in negligence claims and the cost of settling them.

New consultants' contracts, which cost the trust more in salaries, and rising drug costs also had to be added to the picture, says Mr Cumming.

"It's our intention to come in at break-even or very close to break-even at the end of the year, because if we don't it's a problem that carries over to next year for us."

He adds: "At this stage we are not compromising clinical care or cutting back on clinical activity - but we will defer anything we possibly without impacting on clinical quality until April."