A team of specialist cancer care staff are to continue their vital work despite their hospital base being closed.

Workers at the Macmillan Cancer Relief Unit at King Edward VII Hospital in Midhurst have been re-employed by Western Sussex Primary Care Trust (PCT).

They will now work from Midhurst Community Hospital and are providing care in the homes of 200 patients.

Treatment includes giving blood transfusions and chemotherapy.

The PCT and the charity have been in discussions ever since the shock announcement earlier this year that the private hospital was to close because a rescue package to save it fell through.

Longer-term plans include extending the Macmillan service to cover a 25-mile radius taking in other parts of West Sussex and parts of Hampshire and Surrey.

PCT chief executive Claire Holloway said: "It was a real shame to see King Edward VII Hospital close but one good thing to come out of this is the opportunity for the PCT to work jointly with Macmillan to develop local services.

"The existing specialist community palliative care service is already assured and we are working towards developing a more innovative, quite ground-breaking service for the longer-term.

Sara Weech, the PCT's director of planning, partnerships and commissioning, said: "We hope to keep any potential disruption for Macmillan patients to an absolute minimum.

"Our thanks go to everyone who has got involved there has been a marvellous response, which has helped us resolve a very difficult situation within a very short time period."

A spokesman for the Macmillan team said: "Inevitably there will be changes but we're all very excited about the different ways of working.

"Of course we will miss our colleagues and friends at King Edward VII but caring for patients is everyone's priority and we are really pleased that we are able to continue helping local people."

Macmillan regional director Jeff Faulkner said it was vital that people continued to support the charity in its work.

He said: "We cannot underestimate the importance of our fund-raising activities, particularly to support the new ways in which Macmillan staff, working with colleagues in health and social care, will be able to provide specialist palliative care in patients' own homes.

"People have told us they want to be cared for in their own homes for as long as possible and our plans for developing local services will help them to do just that."

Almost 300 staff were made redundant when the hospital closed.

Developers Lincoln Holdings and healthcare company Capio could not agree how to take plans to redevelop the site forward.

The hospital went into provisional liquidation at the end of 2001 after debts spiralled to more than £8 million.

The rescue deal involved redeveloping the hospital's main listed building into flats and building a new hospital nearby.

Anyone with questions about their treatment can contact the PCT's patient advice and liaison service on 01243 534035.