OXFORDSHIRE's main hospitals are pressing ahead with plans to win foundation trust status despite having to wrestle with debts of £33m.

Trevor Campbell Davis, chief executive of Oxford Radcliffe Hospital Trusts, claimed that the cost-cutting had actually improved the quality and speed of services for patients.

And in a markedly upbeat message on the eve of the trust's annual meeting, he disclosed that he expects the John Radcliffe, Churchill and the Horton Hospital, Banbury, to apply for Foundation Trust status next April. He said it now looked like "no more than 60 staff" would be made redundant under the cost-cutting programme. Although a total of 600 jobs are having to disappear, the rest would result from non-replacement of staff.

The trust had lost 160 beds, 30 more than the figure announced in the summer. But he claimed that despite the financial pressure, the trust was, in fact, treating more patients.

"Paradoxically, the biggest consequence of the programme is a faster and better service for patients at our hospitals. We are more efficient than before and in many cases have improved our standard of care."

He said this had in part been achieved by working to reduce the amount of time patients spent in hospital. But he warned there was a real risk of some patients having to wait for beds this winter. Mr Campbell Davis said the trust had cleared the first hurdle in going for foundation status, after being monitored by regulators.