COUNTY health chiefs have been "named and shamed" in a damning report which lists the nation's worst overspending hospital trusts.

The organisation which runs Kidderminster Hospital is among six out of 607 health trusts to have ran up a year-on-year deficit of more than £10 million in the run up to March last year.

A report by the National Audit Office said Worcestershire Acute Hospitals NHS Trust was also one of just seven trusts which ran up debts of more than £5 million during 2002/03.

Although the report reflected a situation which is now more than a year old, the following year did not get better - directors have reported an overspend of £15 million during 2003/04.

The trust - which was the fourth worst UK offender during 2002/03 with a debt of £9.9 million - was helping to "put at risk the overall financial balance of the National Health Service" the report stated.

Using agency staff, an increase in prescribing costs and using private sector workers to meet crucial targets were cited as reasons for the 2002/03 overspend. Yet agency working had now been cut back on and the re-scheduling of cancelled operations was to blame for driving up costs during 2003/04, trust spokesman Richard Haynes said.

Services had not been affected by the debt, Mr Haynes insisted, and the trust was aiming to not get itself into a single penny of debt this year.

This concern was highlighted by an unprecedented meeting of health providers, including the acute trust and the Primary Care Trusts and the Worcestershire Mental Health Partnership NHS Trust, last week.

The partnership aimed to drive down debt and, according to acute trust chairman Michael O'Riordan, "leave the problems of the past behind us".

As the financial picture did not affect patient care, Mr Hayes said patients were concerned with how effective services are - and were getting a better deal as waiting time targets were being met and the number of cancelled operation had been slashed.

Wyre Forest MP Dr Richard Taylor said the report was "devastating" but said he was looking to the trust's present managers to now balance the books. He said: "We have to look forwards and hope the trust can get back into balance without actually cutting any services."