United Lincolnshire Hospitals NHS Trust (ULHT) is working its way out of debt, spending £1.5 million less this year than it was paid.

This is a dramatic turnaround from last year, when it spent £13.8 million more than it received – which followed further significant losses from 2003-2007.

The surplus is just one achievement the trust is celebrating from the last year, which has also seen falls in waiting times and blows struck in the fight against superbugs.

ULHT chief executive Gary Walker said: "In the last year we achieved more improvements than at any other time in our history. We created a clinically-led organisation, employed more staff, earned more income, bought more equipment, tackled quality and safety as a priority and improved our overall efficiency."

In recognition of the trust's performance, Lincolnshire Primary Care Trust has provided it with an additional £11 million funding.

The trust – which operates hospitals across Lincolnshire – is now on target to clear its debt by next year, managers say.

Other achievements include:

l- A 90 per cent fall in waiting times for treatment. By the end of March, 96 per cent of all patients were being treated within 18 weeks of referral.

- A fall from 20 weeks to less than four weeks in 2007 for waiting times for almost all diagnostic tests, such as MRI and CT scans.

- Hitting the national target for waiting times in A&E that 98 per cent of people were seen, treated, and either admitted or discharged within four hours.

- A reduction in the number of C-difficile infections by 41 per cent.

- A reduction in the number of MRSA infections by 37 per cent.