A NEW pathology centre for excellence will be developed at a North East hospital following a 12m grant from the Government.

The new facility at the Queen Elizabeth Hospital in Gateshead is expected to open next year.

It will serve around 700,000 patients from across the south of Tyne and Wear.

Doctors say it improve patient care, as well as quality and efficiency, by giving them more timely, precise and relevant information.

The money is coming from a 330m pot of funding to upgrade NHS facilities in England and is paid for with cost savings from other areas of the Department of Healths budget.

Prime Minister David Cameron and Health Secretary Andrew Lansley yesterday announced the cash to develop the new centre for excellence.

Gateshead Healthcare NHS Foundation Trust will be given the cash under a joint project with City Hospitals Sunderland NHS Foundation Trust and South Tyneside NHS Foundation Trust.

The new centre will be supported by facilities in each of those trusts.

Mr Lansley said: I want NHS patients across the North East to get the best care and treatment. We have saved money in central capital budgets this year, which means we can spend more money on improving NHS facilities. This will mean that more patients in the North East will benefit from the latest world-class equipment.

Mr Cameron said: This Government is investing in the NHS to ensure the very best care is available, thats why I can announce over 330m of new medical equipment, from CT scanners to cancer therapy and neo-natal care facilities.

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Queen Elizabeth Hospital in Gateshead to create centre for excellence