Martin Yeates tried to cling to power at Stafford Hospital

Former Stafford Hospital boss Martin Yeates tried to cling to power at the trust, a public inquiry has been told.

Just weeks before the damning Healthcare Commission report was made public Mr Yeates told NHS bosses he could turn the hospital around and he had no intention of resigning.

Details over his final weeks in the job and how he was allowed to leave the hospital without being sacked emerged at the Francis Inquiry yesterday.

David Stone, who took over as chairman of the Mid Staffs Trust on a temporary basis following the resignation of Toni Brisby, revealed the details surrounding Mr Yeates' departure and negotiated settlement.

It has been reported that as part of a compromise agreement drafted by lawyers the chief executive left with £80,000 notice pay and a £360,000 lump sum from his pension pot.

This is despite an investigation costing £17,500 which suggested there was a case for taking disciplinary action against Mr Yeates, who has never spoken publicly about his role at the hospital.

David Stone, who was brought in as an emergency measure by hospital regulator Monitor before the Healthcare Commission report, said the decision not to sack Mr Yeates was made in a bid to avoid a potentially costly legal battle.

Mr Stone said he first met Mr Yeates in Bakewell, Derbyshire, shortly after taking on the role. He said: "He was clearly very stressed but believed he could still turn things round.

Resignation seemed not part of his plans."

Mr Stone said the former boss still claimed the high death rates was in part down to the way patient deaths were "coded" and that in some ways he had been "unfairly criticised."

He added that arriving at the trust it became clear Mr Yeates could not stay on and he asked for his resignation but Mr Yeates refused.

He said: "It seemed to me that we needed to draw a line across the page and it would not be appropriate for Martin Yeates to return."

He said negotiating a settlement with Mr Yeates, who ultimately received only what his contract with the trust allowed, was the "least unsatisfactory way of moving forward."

Mr Stone said the decision not to instantly sack Mr Yeates was the right thing to do at the time.