The hospital is a specialist unit treating people from around the UK

Robert Jones and Agnes Hunt Orthopaedic Hospital (RJAH) in Shropshire said Powys Local Health Board (LHB) could no longer afford to pay for treatment.

Some 40% of its patients are in Wales, and about 40 people will be affected by the decision. The LHB said it could not comment as it was in talks with RJAH.

It remains unclear how Powys patients will be treated in the meantime.

For generations people from mid and north Wales, particularly from north Powys, have been treated at the hospital, which is a few miles across the border in Gobowen, near Oswestry.

'Desperate news'

In July, the hospital said it had treated more patients from the county than it had been paid for.

A dispute followed over how much the LHB should pay the hospital for treatment received in 2005, but that was eventually settled through arbitration in August.

Now the question of funding has raised its head again.

In a statement, RJAH said: "Powys LHB has told the trust that, due to their financial difficulties, they can no longer afford to treat patients at the hospital despite a number of patients already being authorised up until March 2007.

"Therefore, it is with regret that the RJAH has been instructed by the LHB to not treat any more patients this year from Powys.

"The trust is now working with the LHB to inform a small number of patients they will not be treated at the RJAH until additional funding is agreed."

Osteoporosis sufferer Ray Goodwin, 49, from Welshpool, is one of those affected.

Glyn Davies said it was "desperate news" for people in Powys

The father-of-two receives drugs intravenously every four weeks at RJAH.

"Without the drugs I would have no quality of life, and as far as I'm aware the only other hospital with a licence to administer these drugs is in Scotland," said Mr Goodwin.

"I went to book my monthly appointment yesterday and was told by a nurse that I couldn't receive my treatment. Powys LHB hasn't informed me of this development - happy Christmas Powys LHB."

A spokesman for the LHB said the organisation was "currently in discussions" with RJAH, "and it would be inappropriate to comment on those discussions at this time".

He added: "However, the LHB will inform patients directly as appropriate."

Conservative Mid and West Wales AM Glyn Davies said it was "desperate news for people in Powys".

Meanwhile, Montgomeryshire Liberal Democrat AM Mick Bates urged the LHB to "clarify" its position.