HEALTH chiefs in York are set to take the first steps in creating a Foundation Trust in the city.

The board of York Hospitals NHS Trust is meeting on Wednesday to discuss the controversial scheme - slammed by critics as creating a two-tier health service - and the board is recommended to approve a preliminary application.

If approved the board would consider the application again once legislation was passed and consultation had taken place with staff and the community.

Subject to legislation, the Government intends all NHS Trusts to become NHS Foundation Hospital Trusts over the next five years.

The trusts would be free from Whitehall control and the public would have more input in decisions about spending and the development of services.

York Hospital became eligible for foundation status last year when it received three stars in performance tables.

However, the board decided not to enter the first wave of applications in order to concentrate on other projects, including a major refurbishment of the site and the opening of Hull York Medical School.

A report to the board states: "York Hospitals NHS Trust has the opportunity to be amongst the first (foundation trusts), helping to maximise the benefits and shape the development of the policy.

"Potential benefits can be identified, particularly the opportunity to harness staff, patient and community ownership."

John Sleming, regional officer of Unison covering the York area, said he was "totally opposed to Foundation Trusts".

He said: "It's the next step to privatisation. We should be improving the standard of care in all hospitals, not just those given three stars."

The preliminary application must be submitted by the end of September.

Harrogate Health Care NHS is submitting an application after achieving three-star status.

Updated: 11:29 Monday, September 22, 2003