HEALTH bosses are not planning to apply for Basingstoke to become one of the next foundation hospitals - despite being invited to as it is a three-star organisation.

The hospital had planned to apply for foundation status again for April 2006, after bosses decided to pull out at the last available opportunity back in May.

At that time, bosses pulled the plug on their high-profile bid because of concerns about the hospital's financial situation.

At the start of the financial year, the hospital set itself a challenging savings target of £11million.

This time around, the trust has a number of concerns.

Bosses want to wait to see what comes out of a review about the first foundation hospitals from the Healthcare Commission watchdog, and are still concerned about being able to deliver a sustainable financial position.

Hospital chief executive Mary Edwards told trust board members: "I think having sought advice from the Department of Health and the strategic health authority, the view coming out of discussions was that it was probably better to wait a little bit longer before deciding to re-enter the foundation debate.

"So, my recommendation is that we do not consider putting in an application at the moment and wait and see if there is any more clarity in the new year, particularly after an election."

Maggy Wallace, a non-executive director, explained that benefits gained so far, such as the interest generated by the last bid, should not be lost.

However, she added: "I entirely support the decision not to go for it. I think the advantages have disappeared."

The hospital qualified to make a foundation status bid because it managed to keep its three-star rating this year. Foundation Trusts are designed to have more financial freedom and greater decision-making powers.

Foundation status also aims to give patients, staff and the public a greater say in how their hospital is run.