Foundation hospitals will have greater control over how they run
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The Queen Victoria Hospital NHS Trust in East Grinstead has been shortlisted to be among the country's first foundation hospitals.
The specialist acute hospital in West Sussex is the regional centre for treating burn injuries and is one of 29 nationwide to be selected to make a full application.
Frimley Park Trust, in Camberley, Surrey, has deferred an application until October 2004 to allow more time for a bid to be developed.
The aim is that managers of foundation hospitals will have greater control over the way they work, be able to make local agreements with staff on issues such as salary and assist neighbouring trusts.
'Two-tier' system
But opponents of the plan say that there remains a risk of a "two-tier" health system, with foundation trusts improving while conventional trusts do not.
At the Queen Victoria, managers say they hope to remove bureaucracy and build on the hospital's international reputation.
The trust now needs to draw up and submit detailed plans by the autumn.
it must also retain its three-star status in the government's ratings system if it is to become a foundation hospital next Easter.