02 July 2004
Ten new NHS foundation trusts were launched this week but there was disappointment in three candidate trusts, including two turned down for financial reasons.
The ten English trusts gained foundation status on July 1 after receiving authorisation from the Independent Regulator of Foundation Trusts.
Not so lucky were Nuffield Orthopaedic Centre, King's College and Calderdale & Huddersfield trusts.
The Nuffield Orthopaedic Centre is the first foundation candidate to have its application refused rather than deferred. Both King's and Calderdale, along with two trusts from the first wave in April, will submit further evidence later this year.
The regulator William Moyes was not convinced that the Nuffield would be able to 'operate viably' as a foundation trust under the new payment-by-results regime.
The trust's chief executive, Ed Macalister-Smith, said payment by results did not recognise the higher cost of more specialised treatments.
'We will continue our discussions with the Department of Health to encourage it to refine the funding formula to reimburse trusts, like ours, for the complex work they carry out. As a specialist trust, we do quite a lot of complex work but will be paid at a routine price, which does not adequately reimburse us.'
King's College's application was deferred because the regulator felt there had not been enough time to demonstrate the effectiveness of its new performance and risk management processes.
Calderdale is in the final year of a three-year financial recovery plan and although the regulator noted progress in reducing its debts, he was not convinced the trust could manage long-term financial pressures.
The new foundations include University Hospital Birmingham, Sheffield Teaching Hospitals and Guy's and St Thomas' in London. They join ten foundation trusts that were launched in April. Foundations now represent 15% of acute hospital turnover in England.
Sheffield Teaching Hospitals foundation trust said its new status would allow it to tackle the causes of ill health.
Chief executive Andrew Cash said: 'As the region's second largest employer we want to play a bigger role in regeneration, which is something we've not looked at before. We feel we can make a bigger difference to the health of the city as a foundation trust.'
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