Healthcare regulator Monitor granted South Warwickshire General Hospitals Trust, now South Warwickshire NHS Foundation Trust, the status last week, making it the first in the area to be freed from direct government control.

To earn the status, the hospital had to show it was well enough run and had enough beds to meet national standards.

The hospital was last year turned down after failing to reach accident and emergency targets, but has since built a new two-storey ward and observation unit to ensure patients are treated or admitted faster.

There will be no overnight changes, and chief executive Glen Burley explained the biggest difference was in the people hospital managers answered to.

He said: "Up until Friday I was accountable to the Department of Health through the strategic health authority in Birmingham, now I'm accountable to a group of local people. If patients are concerned about something or want us to improve something they can ask us.

"Rather than being driven by national targets and strategies we will be focused on what's important for people in south Warwickshire."

Concerns in recent years have centred around losing services such as accident and emergency, maternity and children's wards to University Hospital, Coventry. Mr Burley said such decisions would now be made more locally.

He said the hospital had been faced with the option of being part of a larger trust covering a wider area, but had decided the best course was to create its own model for south Warwickshire, and suggested the hospital would begin treating patients outside its Lakin Road site.

Ward manager Julie Smith will be one of 17 staff governors. She sees her role as ensuring patient care comes first, and believes it will be easier to involve local people in governing the hospital.

One change she believes is possible is improving the way the hospital treats people with drink-related illnesses, with 'outreach' programmes at GP surgeries and elsewhere.

Warwick and Leamington MP James Plaskitt congratulated staff and managers. He said: "This is a massive vote of confidence, and it reflects the tremendous work put in at all levels to make Warwick an outstanding hospital.

"This is the start of what I am sure will be a great future for Warwick Hospital. With sound finances, and excellent clinical standards, this new status brings even more opportunities for progress.

"Our fine hospital can now develop even stronger roots in the local community."


What foundation status means

Foundation trust status effectively frees a hospital or NHS trust from direct government control.

There are 129 foundation trusts. Status is granted by independent regulator Monitor, and means the trust is able to make its own decisions on how it wants to develop its services.

A foundation trust becomes a public interest company and can borrow money and keep its own surpluses or profits, which must be spent on patient care.

It must still meet national care standards, which are policed by Monitor.

Part of the status involves being accountable to members of the community. Local people are able to become members of the trust, and can then elect a council of 14 public governors with another 17 drawn from hospital staff.

The council of governors is responsible for appointing or removing the chairman and non-executive directors, approving the appointment of the chief executive and appointing the trust's auditors.

South Warwickshire Foundation NHS Trust currently has more than 5,750 members, made up of patients, residents, councillors and bodies such as the hospital's league of friends.

Call 0800 085 2471 for information on becoming a member or go online.

www.warwickhospital.nhs.uk