HEALTH chiefs in York have decided not to bid for extra powers which could have loosened Government controls and allowed local people a greater say in the running of their hospital.

Managers at York Hospital won the right to apply for Foundation Hospital status because of the hospital's high standard of performance in meeting Government targets.

Simon Pleydell, chief executive of York Health Services NHS Trust, which runs York Hospital, said he had not ruled out applying for status in the future, but he said there were more important issues to be tackled over the next year.

These include meeting new waiting time targets, tackling delayed discharges and making sure that major schemes, such as the expansion programme at York Hospital and the launch of the Hull York Medical School, were implemented smoothly.

Mr Pleydell said: "Although we are interested in the prospect of being a foundation trust, we believe we have other issues that we need to address in the next year which are of greater importance.

"We want to stay close to the policy and how the policy is developed. We will look at it again with a view to a potential second-wave application."

York Hospital was one of the first in the country in line to gain the right to foundation hospital status after it was awarded three-star status last year.

Discussions with Selby and York Primary Care Trust, City of York Council and trust staff took place before the announcement was made today. The deadline for applications is this Friday.

Foundation hospitals will be freed from ministerial control and will be run by trusts on which doctors, patients and local authorities would be represented and have independence to set the level of staff pay.

Mr Pleydell said advantages also included the ability to borrow money and the fact that foundation trusts would be paid for their work at national average prices before 2008 when the system would apply across the whole of the NHS. But he said it would also require time and dedication to implement properly.

Mr Pleydell said: "It's not a question of not being up to it. We are still pushing ahead to retain our three-star status. We still have enormous confidence in what we are achieving as an organisation, but we are realistic enough to know that we have big issues to address this year. Once this year is out of the way, we will be in a much better position to devote time to exploring a second-wave application - and doing it properly."

The trust board was expected to agree the recommendation at a meeting today.

Jim Crook, director of community services at City of York Council, said: "The trust has taken a number of factors into account and our commitment is to continue working in partnership with them.

"We recognise the trust may want to go for foundation status in the future and we want to work with them on that."

Updated: 10:59 Wednesday, February 26, 2003