FAMILY doctors have received £750,000 for leasing land in the grounds of the Holme Valley Memorial Hospital.
The 99-year lease was sold to the operators of a 60-bed nursing home which is due to open next month.
The Memorial Hospital, which was built by public subscription, is subject to a trust overseen by the Charity Commission.
Local residents were concerned that land left in trust was being sold.
But the South Huddersfield Primary Care Trust, which now runs the hospital site, confirmed that the plots have been leased and not sold.
Mr Ron Pollock, project director of estates for the PCT, said: "There has not been any land sale to the developer.
"The land has been leased on a 99-year lease."
Another lease is under negotiation with a developer for a 60-bed sheltered housing scheme, also within the hospital grounds.
The demolition of Oaklands, the former home for the blind on the site, will take place shortly to make way for a new GP practice.