Foundation Trust

What is a Foundation Trust?

A Foundation Trust is a new type of NHS organisation. We will remain part of the National Health Service, employing NHS staff, and treating patients free of charge – exactly as we do now. We will have to maintain the same high quality standards, and will continue to have independent inspections from the Healthcare Commission just like other NHS organisations.

The Health and Social Care Act 2003 established NHS Foundation Trusts as membership organisations, similar to mutual organisations such as building societies or the Co-op. As such we are required to have members. We propose members will be drawn from patients, their parents or carers, staff, and people interested in children’s health and wellbeing. 

Click here to find out how to become a member.

More effective decision making

A new committee will be created, the Council of Governors, which will be largely elected by members. It will not run the Trust day-to-day, but it will make sure the views and experiences of members are at the heart of everything we do.

Being a Foundation Trust gives us more freedom in the way we make decisions. We will be able to maintain our independence so that the needs of children, young people and their families are at the centre of all of our service development decisions.

Financial freedoms

We will be free to manage our own financial arrangements and budgets. If we make a financial surplus, we can invest it in our services, rather than returning it to be spent elsewhere. We will be allowed to borrow prudently, which means we might be able to develop new services or undertake redevelopments. We will be able to run our finances over a five year cycle. This will give us much more flexibility to plan compared to the current annual cycle.  

The Government has appointed a national regulator called Monitor to make sure tough economic standards are met, both in the application process and the future. Monitor, which reports regularly to Parliament, has the authority to intervene in the running of a Foundation Trust if problems develop, such as falling standards. To get it right we have got to be careful with our money.

Around 100 NHS hospitals have become Foundation Trusts, and many more plan to apply.