Health Secretary John Reid has approved a Devon hospital's application to become one of the country's first NHS Foundation Trusts.
The Royal Devon and Exeter Hospital will now submit its application to the newly appointed independent regulator for Foundation Trusts, Bill Moyes. The regulator works independently of the Health Department and is accountable instead to Parliament.
He will authorise the establishment of each individual NHS Foundation Trust and then monitor their work to ensure they comply with operating conditions.
If successful, the Exeter hospital will become one of the first new Foundation Trusts in April.
Royal Devon and Exeter chief executive Angela Pedder said if successful, the hospital would remain part of the NHS but would have greater financial and management responsibilities.
'We are delighted to get the green light from the Health Secretary today. We now have to work with the office of the independent regulator to agree the terms of our authorisation,' she said.
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