A new interim chief executive for cash-strapped Mayday Hospital has been announced a former NHS staff nurse who helped to turn around the financial fortunes of her previous trust.

Helen Walley chief executive of Wandsworth Teaching Primary Care Trust will take up the role on June 1 for an initial period of six to nine months.

The move follows the departure of Vannessa Wood who resigned from her £115,000-a-year chief executive post last week because she felt the hospital needed someone with a "different set of skills".

Ms Walley will move to the three-star rated Mayday Hospital in London Road, Thornton Heath, from the one-star rated Wandsworth Teaching PCT where she has been chief executive since 2002.

During her time there she was involved in the development of a new £55million hospital in Roehampton, which is managed by Wandsworth Teaching PCT and funded by a private finance initiative. The project was said to be delivered to budget.

According to a Mayday spokesman, Ms Walley had "significant success in turning around her PCT's financial position".

Wandsworth PCT is in the process of a three-year financial recovery plan after an £8.3million deficit was announced at the end of the 2004/2005 financial year.

However, the projected deficit for the 2005/2006 financial year is thought to be £0.7million.

Ms Walley will need to employ all of her financial acumen to help Mayday which has had a turbulent few weeks with announcements of job cuts and ward closures.

The hospital is also bidding for foundation status which can only be achieved by meeting a strict set of criteria which includes a balanced budget.

At the moment Mayday is trying to pull back a £6.8million overspend.

Ms Walley said: "I am very much looking forward to joining Mayday.

"I know that the trust has made significant progress in the last few years and I welcome the opportunity to build on Mayday's strengths.

"Mayday faces a considerable financial challenge and my objective will be to support the work already underway to identify new ways of doing things more efficiently while still delivering the best outcomes for patients."

Chairman of Mayday Hospital, Brian Phillpott, said: "Helen Walley's wealth of experience in leading complex healthcare organisations and delivering financial turnaround will be of huge benefit to Mayday at this time. I also believe she has the skills and qualities we need to support our continuing preparations for foundation trust status."