THE Government will introduce a Bill so it can deliver its controversial plans to create foundation hospitals.

Under the Health and Social Care Bill, top performing trusts can apply to become NHS Foundation Trusts and so have greater freedom from Whitehall control.

The trusts will be set up as public interest organisations and be able to borrow from either the public or private sector.

The plan has attracted much criticism and the public sector union, Unison, warned that it would create a two-tier NHS.

The foundation hospitals would be based along the lines of co-operative societies and mutual organisations.

They would continue to work for NHS patients but would be governed by a stakeholder council elected by the local community and health service staff.

Dr Ian Bogle, chairman of the British Medical Association, said foundation trusts would offer an "escape from unnecessary bureaucracy, and an unfettered ability to develop new ways of delivering better patient care".

But he said: "These freedoms ought to be available to all hospitals."

There will be legislative changes to bring NHS dentists under the remit of Primary Care Trusts and, subject to negotiations, revision of the law to underpin a new GP contract.

Following consultation, the Bill will also enable the health service to recover treatment costs where people claim and receive personal injury compensation after accidents or injury.