Foundation Trust requirements relaxed
pharmafile | November 10, 2005 | News story | |
The government is opening up Foundation Trust status to more hospitals as it looks to accelerate health service reform.
NHS Trusts will now only need two stars to apply for financial independence from the government and for the first time mental health trusts can apply.
Currently, only the top-rated three star hospitals can apply and then only if Foundation Trust regulator Monitor is satisfied that their finances are well managed.
Health Secretary Patricia Hewitt said the three-star requirement was too restrictive, but Trusts would only be successful if they "raise their game to the current level required by the independent regulator".
Opening up the process to two-star acute, specialist and mental health Trusts is part of the government's drive to give all trusts the chance to apply for Foundation Status by 2008.
In 2004 three-star ratings were awarded to 45 PCTs with 32 becoming Foundation Trusts – the remaining 13 failed to convince Monitor of their financial viability.
The Health Secretary said the change next year from star ratings to the Annual Healthcheck performance rating system made it an appropriate time to reassess the requirements for Foundation status.
Monitor will rule on the next wave of aspiring Foundation Trusts, which includes some mental health trusts, in Spring 2006, with further authorisations expected towards the end of the year.
Monitor chairman William Moyes said the new applicants would be subject to the same level of assessment as three star trusts and that it would not "lower the bar".
As part of this process the government will introduce new measures to help Trusts manage their finances and decide whether they can apply for foundation status.
"The new diagnostic programme I'm announcing today will drive a culture of improved financial management across the NHS and give trusts a clear indication of any areas for improvement before they embark upon the Foundation Trust application process," Hewitt said.
The Department of Health developed the programme with Monitor and Strategic Health Authorities, and it will be rolled out to all NHS acute trusts.
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