Blackpool's hospitals could have a bright future as part of a new NHS 'Foundation Trust' - but must first deal with immediate financial woes.

That's the message from the new man in charge of the Blackpool, Fylde and Wyre Hospitals NHS Trust, chief executive Julian Hartley.

Mr Hartley, who took on the post before Christmas, says the organisation does want to take advantage of foundation status, which would see it become an independent entity with new powers to raise private sector finances and increase public involvement in its management.

And the former head of the Thameside and Glossop Primary Care Trust, is keen to hear the public's views on services.

But the trust's immediate concern is a potential deficit of £1.7 million by the end of the financial year in April. That is after the savings made by the temporary closure of wards at Rossall, Fleetwood and Lytham hospitals, which are due to be reviewed at the end of the month.

"We want to be a foundation trust but it will take us some time," said Mr Hartley: "We won't join the current wave of applicants. We have to sort out the financial position and strategy before we apply.

"It is difficult to rule anything in or out at the moment. We have got to look at the whole range of services we provide. We have to live within our means."

The problems have been blamed on increased staffing costs and increased drug costs, including a £1 million bill for a new drug which reduces the need for heart surgery. And the pressures will increase when new services, including a major new cardiac unit, open in the coming months, Mr Hartley added.

"The deficit we take forward will make next year even more challenging. The Secretary of State says all NHS organisations need to balance their budgets and achieve a surplus and that will mean some tough decisions.

"It will be hard and we can only do it if we engage with the staff about the problems and engage them to help us find solutions."

And Mr Hartley says the trust is looking to cut down on management costs and has already saved £90,000 by reducing the number of directors. Despite criticism from some politicians, the trust insists management costs represent just 4.63 per cent of the annual £1 million budget.

"There is a lot of management bashing," he added: "But managers are some of the hardest working people in the service. That is not to say we don't continuously review our management structure."

An email address has been set up for patients wanting to praise or complain about the trust's services. It is public.views@bfwhospitals.nhs.uk. And Mr Hartley has pledged to act on complaints. "I read every complaint that comes in - we can learn a lot from complaints," he added.