01 April 2004
Two NHS foundation trust candidates delayed their applications this week as they sought to resolve questions over their financial futures.
The independent regulator Bill Moyes handed a licence to ten of the 12 candidates to begin work on April 1. He said two trusts – North Tees & Hartlepool and Rotherham General Hospitals – asked for deferrals in order to carry out further work to support their applications.
Much of the work concerns the future financial stability of the trusts and the effects of payment by results – the new system governing the flow of money in the NHS. Foundation trusts are due to implement the system early – it is being phased in for other trusts over the next few years.
North Tees & Hartlepool Trust said it was still fully committed to gaining foundation status. But it added: 'Foundation trust status is a positive change, but also a very complex one. We will work together with the regulator's office to gain a firmer understanding of the effects of the new funds flow on the local health economy and primary care trusts and to also shape our business plans and service development strategy with further input from the public.'
Rotherham General Hospitals chief executive Paul Nesbitt said: 'There are still some financial issues relating to foundation trust status that we need to understand more fully. We have an excellent record for achieving targets – including our financial targets – and we need to be confident that this will be maintained under foundation trust status.'
The ten successful applicants were jubilant to be given what Moyes called 'a great opportunity' to tailor services to local needs. Bradford Hospitals' chief executive, David Jackson said the new foundation trust planned to use its freedoms to reduce waiting times and create a dedicated unit for joint and bone surgery.
Health Secretary John Reid said the announcement heralded an era of 'national standards, local delivery and patient choice'.
He added: 'This is a very significant day for the NHS as it is a major step on the road to decentralisation and freeing up the NHS from day-to day-Whitehall control.'
The first NHS foundation trusts are: Basildon and Thurrock University Hospitals; Bradford Hospitals; Countess of Chester Hospital; Doncaster and Bassetlaw Hospitals; Homerton University Hospital; Moorfields Eye Hospital; Peterborough & Stamford Hospitals; Royal Devon and Exeter; The Royal Marsden; Stockport. Together they treat around 2.6m patients a year, employ 30,000 staff and have a turnover of £1.3bn.
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