What is an NHS Foundation Trust?

This page contains information about what NHS Foundation Trusts are.

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What is a Foundation Trust?

NHS Foundation Trusts are part of and committed to the NHS, but they have more freedom in how they run their hospital, and how they meet the expectations of their local community.

Local people, hospital staff, patients, and carers can become members of the Trust. Anyone over the age of 16 can become a member.

Find out how to become a member here.

Part of the NHS

NHS Foundation Trusts are part of the NHS. They are still subject to NHS standards, performance ratings, and systems of inspection. They treat NHS patients according to NHS quality standards and principles.

Public benefits

NHS Foundation Trusts are established as independent public benefit organisations. NHS Foundation Trusts are ‘owned’ by the local communities they serve. Department of Health control will be replaced by local accountability to patients, hospital staff, and the public.

Democratic

NHS Foundation Trusts are democratic. Local people and hospital staff directly elect representatives to serve on the NHS Foundation Trust’s Council of Governors. Find out more about the Rotherham NHS Foundation Trust’s Council of Governors here.

No privatisation

NHS Foundation Trusts will prevent privatisation of the NHS. NHS Foundation Trusts are legally obliged to use their assets to provide NHS services to NHS patients.

Clear accountability

NHS Foundation Trusts operate within a clear accountability framework. 

Not for profit

NHS Foundation Trusts are there to treat NHS patients, not to make profits or to distribute dividends. Most income will come through agreements reached with Primary Care Trusts (PCTs) to provide services for NHS patients at the National Tariff rate. Private income for NHS Foundation Trusts is capped.

Devolution and decentralisation

NHS Foundation Trusts are at the cutting edge of the Government’s commitment to devolution and decentralisation in the public services. Local managers and staff, working with local people, have the freedom to innovate and develop services tailored to the particular needs of their local communities.

Not elitist

NHS Foundation Trusts are not about elitism. The Rotherham NHS Foundation Trust had the opportunity to apply for foundation status, which gives the Trust more freedom of how the Trust sites are run.

Partnerships

NHS Foundation Trusts work in partnership with other NHS organisations. They have a legal duty to co-operate with other local partners using their freedom in ways that fit with NHS principles and are consistent with the needs of other local NHS organisations. They are accountable to the Care Quality Commission, which will award performance ratings.

Reflecting Local Needs

NHS Foundation Trusts are able to gear their services more closely to the communities they serve. They have freedom to develop new ways of working which reflect local needs and priorities. This is done within an NHS framework of standards and inspection that safeguards the quality of NHS care. Direct elections of governors by local people and staff will get local hospitals better focused on meeting the needs of the communities they serve. Strengthening public ownership by making NHS Foundation Trusts more locally accountable will help improve services in many areas.