Plans for a £27 million community hospital have been dropped after the clinical commissioning group (CCG) could not plug a £1.1 million annual shortfall.
The current Ludlow Community Hospital will be refurbished for £160,000 instead.
Earlier this year Shropshire CCG met with the Community Health Trust to discuss whether the CCG could contribute £1.1 million over 25 years.
However, the CCG board decided that it would not be able to provide the financial backing.
Plans for a £27 million community hospital have been dropped after the clinical commissioning group (CCG) could not plug a £1.1 million annual shortfall.
The current Ludlow Community Hospital will be refurbished for £160,000 instead.
Earlier this year Shropshire CCG met with the Community Health Trust to discuss whether the CCG could contribute £1.1 million over 25 years.
However, the CCG board decided that it would not be able to provide the financial backing.
A report looking into all possible ways to plug the gap concluded: “We considered the outcome of all the deliberations and whilst we were able to reduce the financial deficit we were still left with a significant financial gap.”
But Peter Corfield, chairman of Ludlow Hospital League of Friends said the refurbishment plans were just a “sticking plaster”.
He said: “The board have been misled by their directors into believing all the figures stacked up, they clearly said last year that all the funding was available.
"They've been riding a runaway horse."
