VITAL funding for the area's hospital, worth £15m a year, is under threat after the government threw doubt on whether it will be available in the future.

The cash - called the Local Price Modification - is granted to the trust in charge of Furness General in recognition of its higher running costs for three sites spread over a large area.

But bosses at the helm of the Barrow's already cash-strapped hospital have now been told the sum they receive may be slashed from next year from £35m to £20m - leaving a £15m black hole in its finances.

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Aaron Cummins, finance director and deputy chief executive of the University Hospitals of Morecambe Bay NHS Foundation Trust, described the money as important to the organisation's long term 'financial sustainability'.

He said: "The LPM is an important part of our trust’s transition to financial sustainability in the long term, and recognises the significant additional costs that the trust incurs in delivering safe, effective services across such a large, sparsely populated area.

"We are still in discussions with NHS Improvement and NHS England regarding what the LPM might look like for 2017/18, and no decisions have been made so far.

"We are also continuing our work with our Bay Health and Care Partners to agree longer term funding clarity for health and care services across the bay," Mr Cummins added.

UHMBT became the first acute hospital trust in the country to receive the payment after it was deemed to be at a financial disadvantage because its hospitals are so spread out.

It works by giving the organisation with more money for each service it provides compared to trusts in cities and urban areas that can take advantage of economies of scale.

Westmorland and Lonsdale MP Tim Farron met with UHMBT chief executive Jackie Daniel and chairman Pearse Butler in Westminster last week to discuss the issue.

Mr Farron, who is now calling upon the government to guarantee the extra money, said: "The government is letting down our local NHS and everyone who relies on it. "This is money that helps to ensure that a large rural area like ours has three hospitals – in Kendal, Lancaster and Barrow.

"Without this extra money, this could be at risk."

Mr Farron added: "The government must commit to maintaining this funding and guarantee it for five years so that the trust can plan ahead.

"Further cuts on top of those already planned would be disastrous for local health services."

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