The whole of Lincolnshire's �35m NHS debt will be wiped out by extra government funding. It has been confirmed that �83m of additional funding has been allocated to Lincolnshire's Primary Care Trusts for next year.
The funding will be used to clear debts of �15m incurred by East Lincolnshire PCT and a �20m deficit at the United Lincolnshire Hospitals NHS Trust.
The trusts will get the funding on condition that they meet key targets.
Executive for the county's NHS debt recovery plan, Tim Rideout, said the financial position of the trusts needed to be secured in order to provide safe, high quality patient care.
While the debts should have first call on the �83 million new growth money, the rest will go to improving healthcare, he said.