A foundation trust which had central funding for a major hospital building plan cancelled last week is looking at alternative ways of financing the project, including private finance.

Funding worth £460m for the proposed new North Tees and Hartlepool Hospital was one of 12 previous government spending commitments reversed by chief secretary to the Treasury Danny Alexander (news, page 12, 24 June).

The Wynyard Park project was intended to replace existing hospitals at Hartlepool and Stockton-on-Tees.

Following the loss of central funding, a spokeswoman for the foundation told HSJ that directors were looking at funding the development through the private finance initiative. A decision on whether to proceed is expected in around six weeks.

In an email to staff last week, North Tees and Hartlepool Foundation Trust chief executive Alan Foster said he was disappointed at the government decision and needed a “period of time to reflect and take stock”.

But he said: “I would like to assure you that we are determined to keep working towards transforming health and health services which this area so badly needs.

“We are still very much committed to this [new hospital] because patients deserve the very best facilities we can offer.”

Mr Foster said he welcomed an offer from the Department of Health to help look at other funding options.