A hospital trust in County Durham, which earlier this year announced it may have to axe hundreds of jobs, has applied for foundation status.
Durham and Darlington Acute Hospitals NHS Trust hopes to be given the go-ahead by the beginning of November.
Foundation status allows hospitals to take more control over finances and the development of services.
In March, it emerged that up to 700 jobs could be lost over three years, due to falling patient numbers.
The trust has already advertised for members of the public to join the foundation, and over 2,500 have expressed an interest.
'NHS family'
John Saxby, the trust's chief executive said the move to foundation status would benefit patients.
"We will remain true to the basic NHS principles of care delivered on the basis of need, not the ability to pay.
"We will still be part of the NHS family, but will be independent of the Department of Health, which will give us more freedom.
"And it is the freedoms which we believe will over time bring more benefits to patients."
The application for foundation status is with the Department of Health and if approved will then go to before an independent regulator for a three-month assessment.
Mr Saxby said: "All things being well, from 1 November we shall be licensed to operate as a foundation trust within the NHS."
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