A NORTH-EAST hospital group became the region's first NHS Foundation Trust today.

City Hospitals Sunderland was awarded the position after it narrowly missed out in the first group of Foundation Trusts announced earlier this year.

Trust chairman David Graham said: "We are delighted to become a Foundation Trust and to be the first in the region."

Foundation hospitals are run by a board elected by the public. They have greater freedom and are able to borrow more money and set different pay rates.

William Moyes, chairman of the NHS regulator that appoints Foundation hospitals, described the new group of Foundation Trusts as "some of our largest and most prestigious hospitals".

Mr Graham said: "This is a really historic moment in Sunderland healthcare.

"Foundation status is another phase in the development of the trust, and one that devolves power away from the centre to the people of the city who use the service."

City Hospitals Sunderland employs 4,600 people on two main sites - Sunderland Royal Hospital and Sunderland Eye Infirmary.

It became an NHS trust ten years ago.

Five more North-East trusts are in line for Foundation status; North Tees and Hartlepool, Harrogate, York, South Tyneside and Gateshead.