HOSPITAL chiefs are preparing for a new era of health care.

The Department of Health has finally approved York Hospital's bid for foundation status, and referred it to a regulator for evaluation.

Jim Easton, the hospital's chief executive, said he was delighted by the decision, but realistic that his hopes could still be dashed.

"We're very pleased to have crossed the first of two milestones, but there is still a second we need to cross," said Mr Easton.

"The evaluation process is very, very rigorous. Something like half of the people who have applied for foundation status have failed."

If successful, the hospital would be one of the second wave of the Government's flagship foundation trusts.

Its previous application attracted the support of 15,000 people, but was shelved in July 2004 when the trust failed to gain three stars in the Healthcare Commission's annual ratings, after missing its cleanliness target.

But last year the hospital won its three stars back and vowed to press forward again.

Mr Easton praised the staff and patients who made improvements possible.

He said: "I think we've had a very successful year in doing well in all areas.

"We have made good progress in waiting times and cleanliness. We're still going through the process of taking cleaning back in-house, but we have begun to see real changes in the state of our wards.

"We're not where I want us to be yet. I want us to be exceptional every day and we're not, but it shows an improvement in the whole package, and we've just managed to do all that while holding on to a decent financial position as well.

"The contribution from staff has put us in a very good position."

Foundation status would give local people a greater voice in the running of the hospital.

It would also unlock access to private funding for much-needed redevelopment and make it easier for the hospital to recruit and retain quality staff.

Mr Easton said: "We want to be positive, but realistic.

"I think we've done well. I think we have got a stable hospital that's going forward and I think we deserve the chance to be a foundation trust.

"But the assessment will be very rigorous and there is a financial risk around it."

The hospital's application will now be evaluated by Monitor, the Foundation Trust regulator. A final decision will be made later this year.

An open evening for interested members of the public will be held at York Hospital's Post Graduate Education Centre (fifth floor of the main building, above reception), on Wednesday, February 1, at 7.30pm.

Updated: 09:41 Thursday, January 19, 2006