Staff from the private Nuffield hospital on the Castle Hill Hospital site at Cottingham were yesterday taking part in an induction as part of their transfer to new jobs within the NHS.

However there are claims that the process has been badly managed and that staff only learned at the 11th hour that they were not going to be compensated for losing the private healthcare they have had for many years.

A friend of an employee said: "They are having a lot of problems with TUPE (The Transfer of Undertakings Protection of Employment Regulations, which preserve employees' terms and conditions).

"Staff are going to their induction and they still haven't come to an agreement about terms and conditions.

"It now comes out that they say they can't match the private healthcare as it's against their belief being national health and they are not going to match a monetary equivalent.

"Staff have not been kept informed and as of tomorrow when the doors will be locked there will be nowhere to get hold of senior management other than the telephone."

Director of Human Resources for Hull and East Yorkshire Hospitals Trust, Steve Morrison said they had a "genuine concern" for Nuffield staff, adding: "We are happy to welcome Nuffield staff to the NHS on their current terms and conditions or if they so wish under the NHS Agenda For Change terms and conditions.

"The Trust does not feel that the continued provision of private medical insurance can be in any way accommodated in our values as an NHS Trust providing NHS services.

"However, we are happy to consult further on this as part of on going commitment to working with staff who are transferring to the Trust."

The Nuffield's general manager Mark Fountain defended the handling of the transfer and said the NHS were "wanting to welcome people on board". A number of meetings had been organised as part of a consultation process, which was "not necessarily at an end."

He added: "We've had problems coming up all along, but that's part of the normal consultation process. I think it has been handled fine."

A spokeswoman for Nuffield Health said employee representatives had "expressed concern" at the trust's position on private medical insurance at Tuesday's meeting and a further meeting would be held on the issue next week.

The Nuffield was first established in Westbourne Avenue in 1964 and moved to the Castle Hill site seven years ago. It's the last but one of 11 hospitals throughout the country which have been sold off. Nine were acquired last year by General Healthcare Group.