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
free from central government control and strategic health authority performance management
authorised and monitored by an independent regulator known as Monitor
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
accountable to local people through a system of local ownership with members and elected governors; the governor being elected by the members
required to lay their annual reports and accounts before Parliament each year.
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Authorised FTs
Acute and mental health trusts are eligible to apply for foundation trust status. New foundation trusts are regularly being authorised by Monitor and there are currently 105 authorised NHS foundation trusts in England:
Next applicants
NHS trusts considering an application for foundation trust status are required to meet strict eligibility and application criteria.
A powerful partnership A powerful partnership showcases seven of the 14 partnerships that have developed between foundation trusts and FTSE companies since the project was launched by Tony Blair in June 2006. (398 kB PDF)