THE former Health Secretary Frank Dobson has warned that the next wave of Government reforms could spell the end of the NHS as we know it.

Mr Dobson told a North-East audience that plans to introduce so-called "foundation" hospitals would create a two-tier NHS and lead to increasing influence for the private sector.

Health Secretary Alan Milburn believes foundation status - which will devolve power and give hospital managers more freedom over decision making - will unleash innovation.

But the Darlington MP faces increasing dissent within Labour ranks.

Yesterday Mr Dobson, speaking at a regional General Municipal Boilermakers union conference, predicted that foundation hospitals would create divisions in the NHS, set hospital against hospital and tempt health bosses to treat more private patients.

Mr Dobson, a Labour backbencher, was also scathing about plans to bring in private companies to manage failing trusts which had no experience of running hospitals.

The former Health Secretary, who was succeeded by Mr Milburn three years ago said he totally disagreed with the Darlington MP about foundation hospitals.

"I don't blame Alan Milburn for this, there seems endless pressure for change from Downing Street," Mr Dobson said.

He called on Mr Milburn to halt the "permanent revolution" and allow the NHS to make the most of the extra cash, beds and staff that had been poured into the Health Service.

Checks by The Northern Echo found that only one of the three-star hospital trusts in the region - North Tees and Hartlepool NHS Trust - has declared that it is interested in becoming a foundation hospital.

The issue is "under discussion" at South Tees Hospitals NHS Trust and Newcastle Hospitals NHS Trust.

A spokeswoman for County Durham Acute Hospitals NHS Trust confirmed that the split site trust, which includes Darlington Memorial Hospital, Bishop Auckland General Hospital and the University Hospital of North Durham, was now eligible for foundation status.

Bill Law, chief officer of Hartlepool Community Health Council praised Mr Dobson for starting a "much-needed debate" about foundation hospitals.

He said the information which was available was "too one-sided".

Professor David Hunter, of Durham University, an expert on health management, said he feared the foundation experiment would "end in tears" because of the tension between setting targets and devolving power to local hospitals.