DERBYSHIRE Mental Health Services NHS Trust has had its application for foundation trust status turned down.

The shock decision was announced yesterday and trust bosses said they were “very disappointed” after working towards the accreditation for two years.

Their application was rejected because of concerns over the trust's “future financial risk” but bosses are still waiting for a letter which will outline the specific reasons behind the decision.

Foundation trust status would have given the trust more independence from the Department of Health and allowed the people of Derbyshire to have a say in the way it is run by becoming members.

Mike Shewan, chief executive of the trust, said the decision had come as a shock but vowed to reapply for the status “in due course”.

He said: “The assessment process has been a valuable exercise in better understanding our business and the risks to it in future years.

“We will continue to work hard to improve our services and maintain the 'excellent' rating we were given by the Healthcare Commission last year.”

Foundation trust status is granted by Monitor, an independent regulator set up by the Government.

It means that although trusts remain providers of NHS healthcare, they are free from central government control and performance management, accountable to local people, who can become members and governors, and have more freedom to manage their own finances.

Derby Hospitals NHS Trust has foundation trust status and the mental health body had been expecting its application to be approved.

It had already elected a council of governors, made up of members of the public, patients and staff.

It had also taken membership applications from about 3,800 people, including MPs Liz Blackman (Erewash), Mark Todd (South Derbyshire) and Bob Laxton (Derby North).

Mr Todd said: “I'm surprised, disappointed and I will try to find out more from Monitor. If I think they are wrong, I will ask them to reconsider.

“But in my experience, Monitor look at things very rigorously and consider not just a trust's current financial position but its sustainability and how it would cope in the future if something went wrong.”

The council of governors will now be dissolved and the trust is informing everyone who applied for membership.

It had hoped to become the 100th NHS trust to get FT status but Monitor announced yesterday that that had gone to Pennine Care NHS Trust instead.

Michael Moruzzi, spokesman for Monitor, said: “We can confirm that foundation trust status has been refused to Derbyshire Mental Health Services NHS Trust and we will now write to the trust outlining the reasons why. A list of our reasons will be published in a public report in a month's time.”