NHS foundation trusts (FTs) were established as part of a wider NHS reform agenda, through the Health and Social Care (Community Health and Standards) Act 2003, consolidated into the National Health Service Act 2006.
They provide NHS services to NHS patients in accordance with the core principles of the NHS - care that is free and based on need.
They are:
- a new type of NHS organisation established through the 2003 Act as public benefit corporations;
- authorised and regulated by an independent regulator, known as Monitor;
- accountable to their local communities through a system of local ownership with members and elected governors - the governors being elected by the members;
- not required to break even each year although they must be financially viable. They can borrow money within limits set by the regulator, retain surpluses and decide on service development for their local populations;
- free from central government control and strategic health authority performance management;
- required to lay their annual reports and accounts before Parliament each year.