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A short guide to NHS foundation trusts

Document type:

Publication
Author:

Department of Health
Published date:

1 November 2005
Primary audience:

Public
Product number:

271433; Large print edition 271433/A
Gateway reference:

5591
Pages:

16
Supersedes/replaces:

Short guide to NHS foundation trusts
Copyright holder:

Crown

The introduction of NHS foundation trusts (often referred to as foundation hospitals) represents a profound change in the history of the NHS and the way in which hospital services are managed and provided. This document provides information and ten key points about NHS foundation trusts.

NHS foundation trusts are firmly part of the NHS and subject to NHS standards, performance ratings and systems of inspection. Their primary purpose is to provide NHS care to NHS patients according to NHS quality standards and principles.

However, NHS foundation trusts are different from existing NHS trusts in the following ways:

They are independent legal entities - Public benefit corporations.
They have unique governance arrangements and are accountable to local people, who can become members and governors. Each NHS foundation trust has a duty to consult and involve a board of governors (comprising patients, staff, members of the public and partner organisations) in the strategic planning of the organisation.
They are set free from central government control and are no longer performance managed by health authorities. As selfstanding, self-governing organisations, NHS foundation trusts are free to determine their own future.
They have new financial freedoms and can raise capital from both the public and private sectors within borrowing limits determined by projected cash flows and therefore based on affordability. They can retain financial surpluses to invest in the delivery of new NHS services.
They are overseen by Monitor.

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