Patientline, the hospital bedside telephone operator, is in talks with its banks after reporting deeper first-half losses.

The company, which said two months ago that it was in danger of collapse, is restructuring its £85.7 million debt and said that its shares may become worthless. They fell 37 per cent to 0.68p yesterday.

Patientline’s operating loss trebled to £11.2 million, while losses before tax doubled to £15.3 million in the six months to September 28. The company said that its liabilities exceeded assets by £43.1 million.

Geoff White, Patientline’s chairman, said: “If the company’s borrowings can be consensually restructured to a sustainable level, allowing the business to address the price of incoming telephone calls, the company does have a future.”

Patientline hopes to continue as a going concern by slashing costs and offering hospitals new services, including a tracking system to help to fight infections such as MRSA. However, it said that efforts to reschedule its debt were “an essential part of its turnaround” and that talks with its banking syndicate were continuing.

The company’s revenues plunged after outrage by patient groups at the 160 per cent increase in the cost of telephone calls that was introduced in April. Revenue for the year fell 22 per cent, led by a 31 per cent decline in revenue from incoming calls.

Patientline was already burdened by debt from a disastrous £170 million investment in high-tech bedside consoles that could be used to store patient records and order food but were fully utilised by only one hospital.

The increasing acceptance of mobile phones on hospital wards, along with shorter patient stays, has also harmed revenues, the company said.

In September the company said that if trends continued, its liquidity position would become “increasingly tight” towards the end of this year.

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