foundation hospitals

Hospitals in England that are independent, not-for-profit organizations outside of government control. They remain part of the National Health Service and are monitored by stakeholder councils, made up of members drawn from local communities. However, they are able to borrow money on the private markets, set their own clinical priorities, and set pay levels and appoint the staff they choose.

The Labour government led by Prime Minister Tony Blair proposed foundation hospitals in 2002 as a way of setting hospitals free to respond to local need and creating ‘centres of excellence’. Over 50 top-rated hospitals have applied for foundation hospital status, and the government wants all hospitals to have foundation status by 2008. However, there is strong opposition within the Labour Party to the proposals as there are fears that it would create a two-tier national health system, since, able to pay higher wages, they would draw the best staff from other hospitals. Trade unions also oppose the proposals. In November 2003 the plans were narrowly agreed in the House of Commons.

In April 2001, the first ten NHS hospitals converted to the foundation trust system. As of September 2007, there were 73 NHS foundation trusts.