THE regions largest NHS hospital group has been granted Foundation Trust status by regulators.

The announcement means that the flagship Newcastle Hospitals NHS Trust, which has an annual budget of more than 550m, will be given greater financial freedoms.

It will also open up the trust, which includes the Royal Victoria Infirmary, Newcastle General Hospital and the Freeman Hospital, to more democratic control through a locally elected board.

Confirmation that the Tyneside trust is to join the ranks of existing foundation trusts in Sunderland, Gateshead, South Tyneside and Harrogate comes at a time when it has enjoyed its busiest and most successful year.

In the past financial year the trust has treated more than a million patients, boosted research and development, helped to train more doctors and dentists and reduced waiting tims.

The Newcastle Hospitals trust is currently in the midst of a massive, 300m modernisation programme which will result in services operating from the RVI and Freeman sites and the disposal of the Newcastle General Hospital site.

Len Fenwick, chief executive of the Newcastle Hospitals trust, said the move would help to ensure effectiveness and value for money.

The County Durham and Darlington NHS Trust is currently applying for foundation status.

This week officials reported that more than 2,000 members of the public had expressed interest in becoming foundation trust members.