HOSPITALS in the area among the most debt-ridden in the country, new figures have revealed.

Queen Elizabeth Hospital, Woolwich, is in the fourth-worst position nationally, while Lewisham Hospital is ranked in the bottom 10 per cent.

The figures, published last week by the Department of Health, also confirm the hospitals are almost £28m in the red between them.

According to the figures, Queen Elizabeth Hospital has a deficit of more than £19m and a turnover of £133m.

This means its debt is 14.4 per cent of its income before costs the fourth-highest figure in the country.

Queen Elizabeth Hospital says a "substantial factor" behind its low ranking in the tables is because of its financial commitments to pay back huge sums of money into the Private Finance Initiative (PFI).

The PFI scheme saw the hospital built with private cash back in 2001.

Chief executive John Pelly says it costs the hospital an extra £9m to run each year than a traditionally-financed hospital of the same size.

A spokesman said: "We are fully aware of the deficit and we are taking action to claw back money with an £11.4m savings plan.

"We have already identified £10.4m worth of savings since the savings plan was announced in March."

According to the new figures, Lewisham Hospital has a deficit of £8.8m. It has cut around 40 jobs in recent months.

Its total turnover last year was £149.1m, meaning its debt is around six per cent of its income.

Director of finance Jon Sargeant says the hospital has reduced costs by £8m in the past year and is "making progress".

He said: "It has been a difficult year but we are moving in the right direction.

"With our new Riverside building opening at the end of the year we are confident about the future."

Mr Sargeant added he expects the hospital to save a further £8m in the coming year.