THE decision on foundation status for York Hospital has been put on hold again - while crunch finance talks continue.

It is the third time the verdict on whether the hospital will be awarded the coveted status has been delayed, as talks on how much money it will get this year continue to drag on.

If York is made a foundation hospital, its bosses will be given more independence from the Government and locals will be able to become "members" - giving them more of a say in how it is run.

The decision was originally due in August, but had to be put off because an agreement on the hospital's income had not been reached with the cash-strapped Selby and York Primary Care Trust (PCT).

York Hospital bills the PCT for the treatment it gives to patients under a Government system called "payment by results".

It also signs a "service level agreement" with the PCT, an NHS contract that sets out the amount of work it expects to carry out, and how much that will cost.

PCT chiefs across North Yorkshire are trying to cut the amount of money they spend on care for patients in hospital in an attempt to claw back millions of pounds of debt.

Instead, they want more people to be treated in the community.

PCT bosses are therefore proposing slashing £8.2million from York Hospital's service level agreement this year - but that has not been agreed by hospital bosses.

The fact an agreement has still not been reached has meant the decision on whether the hospital can be given foundation status keeps having to be put off. Its finances will be a critical factor for NHS regulators.

A decision was set for the beginning of October, but was delayed until later this month because talks with the PCT were still going on, months later.

A spokesman for Monitor, the body which decides which hospitals can be given foundation status, told The Press that it was now expecting to discuss York's case at its board meeting on November 30 - with an announcement shortly afterwards.

York Hospital finance director Patrick Crowley said the move to foundation status was being reviewed on a "month by month" basis.

"The only thing that's getting in the way is getting a signature on the service level agreement," he said. "We're still in debate with the strategic health authority, we're hoping something will be resolved. It's frustrating, but we recognise the difficulties in terms of finances within the community. We're relatively hopeful we'll know where we stand by the end of October."