Under the foundation scheme, individual hospitals can loan money from the private sector, whilst determining their own wage rates and clinical priorities. Though the scheme is only a couple of years old, it has already resulted in drastic cuts and closures.

The government's regulator - Monitor - recommended that St Helens and Knowsley Hospitals trust among twelve that should now be invited to apply for foundation status.

The announcement comes after Alder Hey children's hospital yesterday launched a consultation into its bid for foundation status, after an initial decision not to bid in 2003.

Much has been made about how local people can now supposedly get involved in running these hospitals, but healthcare union UNISON have exposed this as a sham on their website ( http://www.unison.org.uk/foundation/pages_view.asp?did=511#j).

For more on the government's privatisation agenda, see
 http://www.keepournhspublic.com/index.php
 http://www.catalystmedia.org.uk/issues/nerve7/health_inequalities.htm