HEALTH officials are offering to plug part of a huge spending gap which is threatening some emergency services at Staffordshire's biggest hospital.

Stoke-on-Trent's primary care trust has set up a "risk fund" of £6 million to try and save two schemes which have helped cut waiting times at the Accident and Emergency department at the University Hospital of North Staffordshire (UHNS).

The PCT and its North Staffordshire counterpart is involved in a row with the hospital because it is treating many thousands more patients than the two organisations have agreed to fund for the current financial year.

If the trend continues, the hospital will spend a staggering £20 million over its budget and is expecting to recoup the sum from the trusts which buy its services.

NHS North Staffordshire has already put all its spending under review as a result, including for a newly-opened 22-bed ward where the elderly can be directly referred and a unit staffed by GPs to take pressure off frontline A&E staff.

Now the three bodies will meet on Friday to try and settle the dispute with two directors from the West Midlands Strategic Health Authority acting as mediators.

Stoke-on-Trent PCT finance director Jim Rowley revealed the "risk fund" last night when he told his fellow directors: "It will provide flexibility of additional investment linked to the clinical services agreement with UHNS.

"I hope to be reporting to you soon that a settlement has been found.

"The two PCTs and the hospital had all volunteered to set up Friday's meeting and any of the parties is free to walk away at any time.

"But then we will all have to go through the formal arbitration process for settling contract disputes within the NHS and which commits all parties to the outcome."

"We are not calling into question the hospital's clinical services, but at the meeting we will be talking about the payments and charging regime they have brought in."

The £20 million "black hole" represents five per cent of the hospital's annual budget and is higher than its overspend of four years ago when jobs and beds were axed to balance the books.

Hospital officials say the higher spending has been needed to treat an increasing number of patients within targets laid down by the Government.

The PCT risk fund is made up of surpluses and savings accrued during the first half of the financial year.