NHS regulators have closed an investigation into Wirral Hospital Trust after finding it is taking reasonable steps to improve its finances.

Monitor launched its inquiry in November 2013 after the trust’s costs seemed higher than expected, and its income lower than forecast.

The watchdog wanted to get a better picture of the financial position of the trust and determine whether there were problems with how it is run which may, in turn, have had an impact on patients.

After reviewing the evidence, Monitor ruled the trust is taking reasonable steps to address the issues and will not be taking any formal action.

The regulator will continue to closely review the trust’s financial position and progress to improve financial management.

David Allison, chief executive of Wirral Hospital Trust, said: “I’m pleased Monitor has been assured by the actions we have already taken, and the plans we have in place to meet our financial challenges.

“In common with all NHS hospital trusts, we continue to operate in an extremely challenging financial environment but we are committed to maintaining safe, high-quality patient care while achieving financial stability.”

Frances Shattock, regional director at Monitor, said: "We will now close our investigation but the trust will update us on the progress of its actions to improve its financial management.

“It will remain on formal financial monthly monitoring to provide us with on-going assurance."