PATIENTS are getting a better service from the region's hospitals, if the Government's star rating system is to be believed.

The number of high-performing hospitals and ambulance services in the region has increased from four to seven.

Later this year the bosses of three-star hospitals will be told how they can qualify to become NHS Foundation Hospitals, gaining access to up to £1m a year in extra funds and a range of additional freedoms.

While that is good news for people served by three-star hospitals, those living near two-star hospitals will miss out.

Nationally, 47 hospital trusts improved their rating from last year, 36 received a lower rating and 75 stayed the same.

Health Secretary Alan Milburn said: ''Overall performance is improving. Hospitals are raising their game and the NHS is moving in the right direction. However, there is a long way to go.''

Three stars went to: South Durham Health Care, City Hospitals Sunderland, Newcastle Hospitals, Northallerton Health Care (now run by the South Tees trust), North Tees and Hartlepool, York Health Care and the North-East Ambulance Service.

All the other trusts and ambulance services in the region were given two stars, which indicates that they are performing well overall, "but have not quite reached the same consistently high standards".

While some hospitals took a step up to three stars this year (including Newcastle, Sunderland, Northallerton and York) some previously top-rated trusts dropped down to two stars.

Perhaps the most surprising result is the demotion of Northumbria Health Care NHS Trust, which runs North Tyneside General Hospital, from the first to the second division of trusts.

Once seen as one of the front-runners for NHS Foundation status, the trust is run by chief executive Sue Page, who has helped advise the Department of Health on modernisation strategies.

Last night, a spokeswoman for the trust said: "We are in talks with the Commission for Health Improvement about our situation. We have a number of issues with them concerning procedures."

Another trust to drop from three to two stars is South Tyneside Health Care. A spokesman for the South Tyneside trust said: "We are confident that we will quickly regain our three-star status."

The new £97m privately financed University Hospital of North Durham remains on two stars, along with the expanding James Cook University Hospital, Middlesbrough.