A row has erupted amid fears Portland Hospital could be sold off in the future as part of wider plans to save £7 million.

The idea the site – which is losing its community beds – could be sold off was mooted in a Dorset HealthCare board report.

However the trust said there are no plans to do so, and the idea was not even discussed at a meeting. It said it only came up as bosses wanted to think about how ‘future investment priorities’ could be funded.

But it has left campaigners worried about the future of the facility and island health services – and they have called for more transparency.

The report, written by the trust’s director of finance and strategic development Matthew Metcalfe, said the disposal of St Leonard’s, King’s Park Hospital, and Portland Hospital could raise an additional £7m in capital.

It added together with surplus cash, this would provide £32m capital for investment over the three years ending March 2022, against a remaining priority requirement within mental health of £42.4m.

The report also stated that, pending public consultation, the relocation of services from the hospital to the Health Centre and Gatehouse surgery were a ‘high priority’ - something campaigners say solidifies their argument that the hospital is being prepared for disposal.

Giovanna Lewis of Defend Dorset NHS and Save Portland Beds said there was “a growing lack of trust” among campaigners and residents towards the board.

“This week we see, on the board’s agenda, that the ‘disposal’ of Portland Hospital, together with two other hospitals in Dorset, was considered as a way to deal with their capital investment shortfall,” she said. “The agenda included a proposal to move services left at Portland Hospital to our two surgeries - with local consultation.

“Currently there is nowhere on the island where residents can receive end of life care, rehabilitation or care before they go home after operations and falls. This is a real problem for us here, particularly when family members are also elderly and cannot travel easily to Weymouth and beyond.

“There are so many maybes and changes in what we discover, that it creates uncertainty and a growing lack of trust.”

The trust has now hit back with chief executive, Ron Shields claiming the accusations were a “distortion” of the agenda.

A spokesman for the trust said: “The main focus of the board paper, and subsequent discussion at the meeting, was about the trust’s future capital investment priorities. It included a brief reference about possible ways these priorities could be funded, through existing cash reserves, national funding streams or through the sale of land assets, but these were not discussed at the meeting. “The board will be having further discussions about how all the priorities agreed will be funded. There is no plan to sell Portland Hospital.”

Dorset HealthCare's chief executive speaks out

The report’s circulation on social media prompted the trust’s chief executive, Ron Shields to issue a rebuttal claiming the accusations were “a complete misrepresentation” of the agenda and there were no plans to sell the site.

Chief executive of Dorset HealthCare, Ron Shields said: “The Defend Dorset NHS posts about Portland Hospital on Facebook and Twitter are a complete misrepresentation and distortion of the paper and discussion that took place at the board.

“To be absolutely clear, there is no plan to sell Portland Hospital. At yesterday’s meeting, which is not reported in the social media posts, the board discussed a series of engagement meetings in October with the people of Portland to plan for NHS services on the island. These will be publicised soon.

“The Portland Hospital site will be part of those discussions and the site could possibly be used as a new hub for the island, as the site for a care home, or for other health services. The hospital is not valued at £7m. It is not being sold.