The chief executive of the Royal National Orthopaedic Hospital has resigned.

Alan Davison, who has been at the Stanmore hospital for four years, left after mutual agreement with the trust's board. Jacky Sherman, its director of operations has been appointed acting chief executive.

The trust's chairman was this week re-appointed by Health Secretary Frank Dobson, as were non-executive directors Leonie Cowen and John Faris.

Meanwhile, the trust's acting director of planning and performance, Phyllis Shelton, has condemned a health authority report saying the RNOH is in financial difficulties as a "misrepresentation".

The report said: "Many purchasers have signalled intentions to reduce funding to the trust with the potential for £750,000 of income being lost."

But this was denied by Ms Shelton, who said: "We do not have a financial deficit and we are expecting no reduction in our income."

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