WORKFORCE: Julia Squire, the chief executive of Mid Yorkshire Hospitals Trust, which is facing a £20m year-end deficit, has resigned.

The trust has announced she will be replaced with Stephen Eames, currently chief executive of County Durham and Darlington Foundation Trust.

Mid Yorkshire has faced mounting finance and performance problems, and was last month told by an employment tribunal to pay £4.5m to a former staff member.

NHS Yorkshire and the Humber sent in a team to analyse its finances. The trust last month denied to HSJ rumours that Ms Squire was stepping down.

The trust is struggling to staff emergency services and this month it was reported the trust was considering using Army staff. It has recently-opened private finance initiative services and one of the local MPs is shadow home secretary Yvette Cooper.

Well placed observers say the trust may need to be dissolved, and its services split between two organisations, to be sustainable.

Trust chairman Ed Anderson said in a statement: “Julia has been a committed leader. She has delivered improvements and oversaw the opening of two new state-of-the-art hospital facilities for our patients. The trust board wishes Julia every success in her new role and expresses its thanks for her positive contribution.”

Mr Eames, who will take up the chief executive post in March, said: “Having started my NHS career in Dewsbury over 30 years ago I am delighted to be joining the trust at this time. I am looking forward to working with all the staff and partner organisations in Mid Yorkshire to provide the best possible care and services for all our patients and to lead the trust in meeting the tough challenges that lie ahead.”

Tracey McErlain-Burns, chief nurse, will act as interim chief executive until Mr Eames joins.

Ms Squire will take up an as-yet-unspecified role at the NHS Confederation.