The government introduced treatment centres with independent sector involvement to provide additional capacity for NHS services. Later, the Health Select Committee raised questions as to whether they provided value for money.
The Act provided for the establishment of NHS foundation trusts – which had greater financial and management freedoms – and a new independent regulator.
The independent regulator's role was to authorise NHS trusts to become foundation trusts and intervene in the event of significant non-compliance with the terms of authorisation.
The first 10 foundation trusts came into operation. The central objective for creating foundation trusts was the desire to devolve power away from the centre.
The government outlined its priorities for the NHS between 2004–08, and confirmed there would be continued investment to increase capacity across the system.
