Hospitals need to innovate and compete, says health minister

Removing the current cap on the proportion of income that NHS foundation trusts can get from privately paying patients will give hospitals in England the freedom to innovate, the health minister Lord Howe has said.

Speaking at a conference on “hospitals in the new health service,” organised by the think tank Reform, Lord Howe said that, subject to consultation, the government would abolish the private income cap. “This will mean that hospitals will be free to innovate. We want them to be able to pursue commercial opportunities,” he said.

The aim is for all trusts to have foundation status by 2012-14. “We want them to be able to compete with other trusts on a level playing field,” said Lord Howe.

He told the …