The new chief executive of the James Paget University Hospital was praised yesterday for 'grasping the nettle' in a bid to make improvements following a third warning notice issued by the watchdog the Care Quality Commission (CQC).

Patrick Thompson, chairman of Local Involvement Network Norfolk LINk, said patients could 'trust' the hospital again and that lessons had been learned.

CQC inspectors have been to and from the under-fire hospital since a failed inspection into dignity and nutrition standards a year ago.

Dr Thompson was speaking following a presentation by David Hill, the hospital's new interim chief executive, on the future of care at the James Paget at a governors council meeting.

He said: 'I have to congratulate you and the hospital. In the last three weeks it is amazing what is happening.

'Walking around the hospital, I think the staff and the patients and us from outside on behalf of the patients, can now trust the hospital again.

'We were beginning to think nobody was listening; not at the bottom, not in the middle and not at the top. I have to be honest nobody did listen – now they are.'

He said Mr Hill had 'grasped the nettle, making it sting where it hurts'.

'I think now the treatment is happening,' he said.

He continued: 'I have to congratulate every member of this hospital in turning it around as they have. It isn't just the chief executive or the chairman. It is the cleaners, it is everybody. I think we have all learned a lesson.'

Mr Hill said the current situation with the CQC is that the hospital is not compliant in three areas; care and welfare, medicines management and records.

However, inspectors revisited last week and gave 'very positive feedback' in progress made on medicines management, Mr Hill said, assuring governors 'we are not complacent'.

'By the end of three months I am fairly confident we can turn all these compliant, but we haven't got three months we have got three weeks,' he added.

'We have a good relationship with the CQC, but the time scales are set. I wanted three months. I do not have it.'

Mr Hill warned: 'We may get another adverse report because we have not got where we want to be yet. I cannot stand here and give assurances.'

He added that the hospital is facing a difficult challenge as cost-cutting measures mean jobs are currently under threat.

The trust has been told it must save �19.5m by 2014 and 64 posts have been identified as being at risk of redundancy.