Your news story (page 7, 4 June) on Herefordshire Community Health trust's funding problems was largely accurate, but the health authority never expected the trust to run a new 32-bed hospital for the same money as an old 18-bed hospital.

In 1994, a level of funding for a 28-bed hospital was agreed, and this is now being paid.

The remaining four beds were developed to attract income from outside Herefordshire, and were not underwritten by the HA.

Melvyn Ellis

Chief executive

Herefordshire HA