YOUR local hospital is going into business – as a property developer.

Bosses at Calderdale and Huddersfield NHS Foundation Trust (CHFT) have acknowledged a lack of commercial interest in the former St Luke’s Hospital site at Crosland Moor due to a depressed construction market.

Trust directors have now approved an unprecedented move to form a 15 to 20-year business partnership with Henry Boot Developments in a bid to make the most of the site.

The hospital site – which has been in use for the best part of a century – has provided many services over the years.

It has been used both by the Trust for many of its services, including geriatric and stroke care, and by the South West Yorkshire Mental Health Care Trust.

Those services will all be gone by the end of next month, with some shifted to the Infirmary site and others into community facilities.

The trust says their intention is to support the efficient use of their estate while helping to secure funding to develop the Acre Mills area opposite Huddersfield Royal Infirmary.

It decided to vacate the St Luke’s site in 2006 and the Examiner received confirmation that it had still not been sold.

They have not however confirmed exactly how they plan to increase the value of the site, or whether the new partnership will become actively involved in the creation of a new development.

Union leaders have urged caution over the move.

Unison branch secretary Paul Cooney said: “We are attempting to find out more about this deal.

“I would be concerned if there was any way that the trust’s focus on health care provision was distracted by this kind of relationship.”

The partnership will split decision making and profit 50/50.

Its status as a Limited Liability Partnership means that the new organisation will be responsible for any debts it runs up, not the individual members.

Finance director at the trust, Mark Brearley, said: “The joint venture will allow us to turn the value of the St Luke’s site into benefits for the people of Huddersfield and Calderdale by developing modern health services at both Acre Mill and Huddersfield Royal Infirmary.

“In difficult economic times, it provides a vehicle to deliver healthcare facilities fit for the 21st century.”

Henry Boot Developments said they think the move will be copied by similar organisations.

The trust is stressing this will not be a Private Finance Initiative project, and they will have a 50% share and 50% say in decision making.

They said it would add flexibility of funding arrangements and the benefits of utilising public and private sector skills.

David Anderson, managing director of Henry Boot Developments, said: “We are delighted to have been chosen by the trust as their development partner and are confident that the joint venture will enable the trust to fulfil its objectives despite the current economic climate.

“The joint venture is the result of innovative thinking on their part and we anticipate it will be adopted by other public bodies in due course.”