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Purpose of NHS foundation trusts

  • Last modified date:
    9 February 2007

The Health and Social Care (Community Health and Standards) Act 2003 establishes NHS Foundation Trusts as independent public benefit corporations modelled on co-operative and mutual traditions. Public benefit corporations are a new type of organisation, specially developed to reflect the unique aims and responsibilities of NHS Foundation Trusts.

NHS Foundation Trusts exist to provide and develop services for NHS patients according to NHS principles and standards and are subject to NHS systems of inspection. Transferring ownership and accountability from Whitehall to the local community means that NHS Foundation Trusts are able to tailor their services to best meet the needs of the local population and tackle health inequalities more effectively.

NHS Foundation Trusts have greater freedoms to manage their own affairs and improve services. The purpose in establishing NHS Foundation Trusts is to:

  1. Devolve more power and responsibility to the local level so that NHS hospitals are better able to respond to the needs of patients. The establishment of NHS Foundation Trusts aims to bring about improved access to higher quality services for NHS patients by incentivising innovation and entrepreneurialism.
  2. Devolve accountability to local stakeholders including NHS patients and staff. NHS Foundation Trusts operate governance arrangements that give local stakeholders and the public opportunities to influence the overall stewardship of the organisation and its strategic development.
  3. Support patient choice by increasing the plurality and diversity of providers within the NHS. 

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