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In 2002, Labour created foundation trusts to run hospitals.
Currently among foundation trusts (all NHS trusts are supposed to become foundation trusts by 2014) private income is averaging at 1.1% apart from a handful of specialist hospitals.
However, foundation trusts had planned to cut agency spend by 44% in that period.
From 2003, Foundation Trusts were introduced converting hospitals into semi-independent businesses.
He shook up hospitals by allowing the better performers to gain greater freedom as "foundation trusts".
Seven chief executives have quit from foundation trusts, and three from trusts.
About half of hospitals are foundation trusts; all will be by 2014.
So far, Trafford Healthcare NHS Trust has sought bids only from independently run foundation trusts.
Monitor has previously reported that an increasing number of foundation trusts are running up deficits.
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Public NHS hospitals can be divided into Foundation Trusts (FTs) and non-Foundation Trusts (NFTs).
For the remaining non-foundation trusts, it was applied to most elective admissions in 2005/6.
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