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Daisy Hill Hospital in Newry, County Down, is to become an elective overnight stay centre, the health minister has said.

Robin Swann said centres were being established as part of a reorganisation of surgery services and described the move as "good news".

However, ����ý News NI understands the hospital will lose its capacity to provide emergency general surgery.

Emergency surgery had been halted at Daisy Hill at the end of February.

In January, a Southern Health Trust board meeting was told the withdrawal of emergency general surgery was an "interim" measure due to ongoing recruitment challenges.

At the time, only two out of six general surgical consultant posts at the hospital had been filled, despite repeated recruitment processes.

General surgery is performed by highly skilled surgeons who typically operate on common abdominal complaints including elective gall bladder surgery, hernia repairs and bowel repairs.

By separating elective surgery from emergency surgery it is hoped waiting lists can be tackled and planned surgeries will not be affected by emergencies.

Mr Swann said the elective overnight stay centres were being established as part of a reorganisation of surgery services.

The Mater Hospital in Belfast was announced as the first of these new facilities in June. Daisy Hill Hospital has now been designated as the second.

The Southern Trust's chief executive, Dr Maria O'Kane, said it was an "exciting opportunity to develop an essential regional service", which would benefit the growing numbers of patients on local and regional waiting lists.

"We are very proud of the high quality of services provided by our very dedicated staff at Daisy Hill," she said.

"In addition to the wide range of specialties already provided from the hospital, we now look forward to enhancing its elective surgical capacity."

'Much-needed boost'

The announcement was also welcomed by the Daisy Hill Hospital Group, who described it as a "much-needed boost in confidence for staff, patients and the wider community".

"It sends a clear message that the hospital's future is secure," the group, made up of cross-party political representatives, community leaders and clinical experts, said.

"It also confirms the geographical importance of the hospital as a major acute healthcare hub, continuing to provide safe, accessible services to citizens across Northern Ireland, and to our border communities in Louth and Monaghan."

The group added it was "the beginning of an exciting new phase for Daisy Hill".

Mr Swann said he was "very pleased to be able to deliver this very good news for Daisy Hill Hospital".

"Today's announcement on Daisy Hill underlines my commitment to making the best use of our hospital network and ensuring all our hospitals have a sustainable and vitally important place in that network."

SDLP assembly member Justin McNulty said the creation of an elective surgery hub at the hospital would not make up for any loss of emergency general surgery.

"I am fully supportive of the plans to expand elective surgery and will do everything I can to make them a success," the Newry and Armagh representative said.

It comes days after it was warned emergency general surgery was at risk at the South West Acute Hospital (SWAH).

The Western Trust said a decision has not yet been made on the future of emergency general surgery at SWAH in Enniskillen.

At a board meeting on Monday, members heard the service was fragile because there were too few consultant surgeons.