National Health Service Act 2006

Functions E+W

43 Authorised services E+W

[F1 (1) The principal purpose of an NHS foundation trust is the provision of goods and services for the purposes of the health service in England.]

[F1 (2) An NHS foundation trust may provide goods and services for any purposes related to—

(a) the provision of services provided to individuals for or in connection with the prevention, diagnosis or treatment of illness, and

(b) the promotion and protection of public health.]

[F1 (2A) An NHS foundation trust does not fulfil its principal purpose unless, in each financial year, its total income from the provision of goods and services for the purposes of the health service in England is greater than its total income from the provision of goods and services for any other purposes.]

(3) [F2 An] NHS foundation trust may also carry on activities other than those mentioned in [F3 subsection (2)] F4 ... for the purpose of making additional income available in order better to carry on its principal purpose.

[F5 (3A) Each annual report prepared by an NHS foundation trust must give information on the impact that income received by the trust otherwise than from the provision of goods and services for the purposes of the health service in England has had on the provision by the trust of goods and services for those purposes.

(3B) Each document prepared by an NHS foundation trust under paragraph 27 of Schedule 7 (forward plan) must include information about—

(a) the activities other than the provision of goods and services for the purposes of the health service in England that the trust proposes to carry on, and

(b) the income it expects to receive from doing so.

(3C) Where a document which is being prepared under paragraph 27 of Schedule 7 contains a proposal that an NHS foundation trust carry on an activity of a kind mentioned in subsection (3B)(a), the council of governors of the trust must—

(a) determine whether it is satisfied that the carrying on of the activity will not to any significant extent interfere with the fulfilment by the trust of its principal purpose or the performance of its other functions, and

(b) notify the directors of the trust of its determination.

(3D) An NHS foundation trust which proposes to increase by 5% or more the proportion of its total income in any financial year attributable to activities other than the provision of goods and services for the purposes of the health service in England may implement the proposal only if more than half of the members of the council of governors of the trust voting approve its implementation.]

(4) The authorisation may require the provision, wholly or partly for the purposes of the health service in England, of goods and services by the NHS foundation trust.

(5) The authorisation must authorise and may require the NHS foundation trust—

(a) to carry out research in connection with the provision of health care,

(b) to make facilities and staff available for the purposes of education, training or research carried on by others,

and, in deciding how to exercise its functions under this subsection in a case where any of the corporation's hospitals includes a medical or dental school provided by a university, the regulator must have regard to the need to establish and maintain appropriate arrangements within the university.

(6) In deciding whether or not to require the NHS foundation trust to provide, wholly or partly for the purposes of the health service in England, any goods or services the regulator must have regard (among other things) to—

(a) the need for the provision of goods or services in the area in question,

(b) any provision of goods or services by other health service bodies in the area in question,

(c) any other provision by the NHS foundation trust with which the provision of the goods or services is connected,

(d) any agreement or arrangement to which the body corporate which is the NHS foundation trust is or was a party.

(7) Such a requirement as is mentioned in subsection (4) may be framed by reference (among other things) to—

(a) goods or services in general or of a particular description,

(b) goods or services required to meet the needs of health service bodies in general or those of a particular description,

(c) goods or services required to meet the needs of other persons of a particular description,

(d) the volume of goods or services provided,

(e) the place where goods or services are provided,

(f) the period within which goods or services are provided.

Textual Amendments

F1 S. 43(1)-(2A) substituted for s. 43(1)(2) (1.10.2012) by Health and Social Care Act 2012 (c. 7), ss. 164(1), 306(4); S.I. 2012/1831, art. 2(2)

F2 Word in s. 43(3) substituted (1.10.2012) by Health and Social Care Act 2012 (c. 7), ss. 164(2)(a), 306(4); S.I. 2012/1831, art. 2(2)

F3 Words in s. 43(3) substituted (1.10.2012) by Health and Social Care Act 2012 (c. 7), ss. 164(2)(b), 306(4); S.I. 2012/1831, art. 2(2)

F4 Words in s. 43(3) omitted (1.10.2012) by virtue of Health and Social Care Act 2012 (c. 7), ss. 164(2)(c), 306(4); S.I. 2012/1831, art. 2(2)

F5 S. 43(3A)-(3D) inserted (1.10.2012) by Health and Social Care Act 2012 (c. 7), ss. 164(3), 306(4); S.I. 2012/1831, art. 2(2)

44 [F6 Power to charge for accommodation etc.] E+W

F7 (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F8 (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F9 (2A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F10 (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F10 (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F10 (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6) According to the nature of its functions, an NHS foundation trust may, in the case of patients being provided with goods and services for the purposes of the health service, make accommodation or further services available for patients who give undertakings (or for whom undertakings are given) to pay any charges imposed by the NHS foundation trust in respect of the accommodation or services.

(7) An NHS foundation trust may exercise the power conferred by subsection (6) only to the extent that its exercise does not to any significant extent interfere with the performance by the NHS foundation trust of its functions.

Textual Amendments

F6 S. 44 title substituted (1.10.2012) by Health and Social Care Act 2012 (c. 7), ss. 165(2), 306(4); S.I. 2012/1831, art. 2(2)

F7 S. 44(1) omitted (1.10.2012) by virtue of Health and Social Care Act 2012 (c. 7), ss. 165(1)(a), 306(4); S.I. 2012/1831, art. 2(2)

F8 S. 44(2) omitted (1.10.2012) by virtue of Health and Social Care Act 2012 (c. 7), ss. 165(1)(b), 306(4); S.I. 2012/1831, art. 2(2)

F9 S. 44(2A) omitted (1.10.2012) by virtue of Health and Social Care Act 2012 (c. 7), ss. 165(1)(c), 306(4); S.I. 2012/1831, art. 2(2)

F10 S. 44(3)-(5) omitted (1.10.2012) by virtue of Health and Social Care Act 2012 (c. 7), ss. 165(1)(d), 306(4); S.I. 2012/1831, art. 2(2)

45 Protection of property E+W

(1) An NHS foundation trust may not dispose of any protected property without the approval of the regulator.

(2) Disposing of property includes disposing of part of it or granting an interest in it.

(3) Protected property is property of the trust designated as protected in its authorisation.

(4) The regulator may designate property as protected if it considers it is needed—

(a) for the purposes of any goods or services which the authorisation requires the trust to provide wholly or partly for the purposes of the health service in England, or

(b) for the purpose of doing anything which the trust is required to do under section 43(5).

(5) The regulator may give approval under subsection (1) on any terms it considers appropriate.

(6) An NHS foundation trust may not create a floating charge on its property.

46 Financial powers E+W

(1) An NHS foundation trust may borrow money for the purposes of or in connection with its functions.

(2) But the total amount of the NHS foundation trust's borrowing is subject to the limit imposed by its authorisation.

(3) The limit must be reviewed annually by the regulator.

(4) An NHS foundation trust may invest money (other than money held by it as trustee) for the purposes of or in connection with its functions.

(5) The investment may include investment by—

(a) forming, or participating in forming, bodies corporate,

(b) otherwise acquiring membership of bodies corporate.

(6) An NHS foundation trust may give financial assistance (whether by way of loan, guarantee or otherwise) to any person for the purposes of or in connection with its functions.

47 General powers E+W

(1) An NHS foundation trust may do anything which appears to it to be necessary or expedient for the purpose of or in connection with its functions.

(2) In particular it may—

(a) acquire and dispose of property,

(b) enter into contracts,

(c) accept gifts of property (including property to be held on trust for the purposes of the NHS foundation trust or for any purposes relating to the health service),

(d) employ staff.

(3) Any power of the NHS foundation trust to pay remuneration and allowances to any person includes power to make arrangements for providing, or securing the provision of, pensions or gratuities (including those payable by way of compensation for loss of employment or loss or reduction of pay).

(4) “The purposes of the NHS foundation trust” means the general or any specific purposes of the trust (including the purposes of any specific hospital at or from which services are provided by the trust).

[F11 48 Information E+W

(1) The Secretary of State may require an NHS foundation trust to provide the Secretary of State with such information as the Secretary of State considers it necessary to have for the purposes of the functions of the Secretary of State in relation to the health service.

(2) The information must be provided in such form, and at such time or within such period, as the Secretary of State may require.]

Textual Amendments

F11 S. 48 substituted (1.11.2012) by Health and Social Care Act 2012 (c. 7), ss. 166, 306(4); S.I. 2012/2657, art. 2(2) (with art. 10)

49 Entry and inspection of premises E+W

An authorisation may require an NHS foundation trust to allow the regulator to enter and inspect premises owned or controlled by the trust.

50 Fees E+W

An authorisation may require an NHS foundation trust to pay a reasonable annual fee to the regulator.

51 Trust funds and trustees E+W

(1) The Secretary of State may by order provide for the appointment of trustees for an NHS foundation trust to hold property on trust—

(a) for the purposes of the NHS foundation trust, or

(b) for any purposes relating to the health service.

(2) The order may—

(a) make provision as to the persons by whom trustees must be appointed and generally as to the method of their appointment,

(b) make any appointment subject to such conditions as may be specified in the order (including conditions requiring the consent of the Secretary of State),

(c) make provision as to the number of trustees to be appointed, including provision under which that number may from time to time be determined by the Secretary of State after consultation with such persons as he considers appropriate,

(d) make provision with respect to the term of office of any trustee and his removal from office.

(3) Where trustees have been appointed for an NHS foundation trust under this section, the Secretary of State may by order provide for the transfer of any trust property from the NHS foundation trust to the trustees.

(4) Where an NHS trust for which trustees have been appointed under paragraph 10 of Schedule 4 is given an authorisation, the order appointing the trustees has effect as an order under this section.

(5) “The purposes of the NHS foundation trust” means the general or any specific purposes of the trust (including the purposes of any specific hospital at or from which services are provided by the trust).