Good Hope bosses say it "needs" to merge to gain foundation status
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A foundation hospital trust is planning to "take-over" a smaller cash-strapped NHS hospital in what is thought to be the first merger of its kind.
Heart of England NHS Foundation Trust in Birmingham hopes to acquire Good Hope Hospital, which is £15m in debt.
Ordinary mergers create a new trust but in this case Good Hope, in Sutton Coldfield, would be formally dissolved.
Negotiations are ongoing with the strategic health authority before a proposal is sent to the government.
Good Hope became the first hospital in the country in 2003 to be run by a private company when its star rating dropped from the highest of three stars to no stars.
'Equal footing'
Heart of England Trust entered into a management contract with the hospital in November 2005 that saw chief executive Mark Goldman running both hospitals.
The idea for the merger was put forward by Good Hope's foundation development board as "the only way" for the hospital to reach foundation status by the government's deadline of 2008.
If the proposal is accepted by the secretary of state the public will be consulted on the idea.
A spokeswoman for the foundation trust said the "merger by absorption", which is like a take-over, would put all staff from both hospitals on an equal footing.
The foundation trust currently includes Heartlands Hospital, Birmingham Chest Clinic and Solihull hospital.