Health chiefs back new £27m Ludlow hospital

A new £27 million hospital in south Shropshire has moved a step closer to reality after county health chiefs backed the plans.

The board of Shropshire Community Health NHS Trust has given its blessing to proposals to build a health village including a new hospital and two GP surgeries at Ludlow Eco Park on the outskirts of the town.

The final go-ahead is expected to be given by the Strategic Health Authority on Thursday and if approval is granted building work could start this summer.

It has also been revealed that Amber Investments, the private equity company selected by NHS bosses to build the hospital, will be paid about £1.5 million every year for 25 years once the new facility is opened in 2014.

NHS chiefs said the lease payment agreed with Amber for year one is £1,572,000 which will be reassessed each year in line with the Retail Price Index.

If the RPI, used to measure inflation in the economy, rises the yearly lease payment would also increase. Dozens of residents attended the meeting of Shropshire Community Health NHS Trust's board at Ludlow Mascall Centre yesterday and the decision to back the project has been greeted with delight by campaigners.

Peter Corfield, chairman of Ludlow Hospital League of Friends, said: "What takes place in Ludlow could be used to set a pattern for other towns."

Councillor Martin Taylor-Smith said: "I've been out knocking on doors in the town and it is clear how much people want this hospital."