York Hospital will be handed up to £1 million and a second chance to bid for controversial "foundation" status after scoring top marks in Government tables.

The Commission for Health Improvement (CHI) today revealed York Hospitals NHS Trust had been awarded three stars for the second year running.

The hospital will now receive a second invitation to apply to become a "super" Trust, with greater freedom from Whitehall control.

Trust chief executive Simon Pleydell, who is leaving in September, said a second-wave bid was now a real possibility.

He said: "The trust board, in conjunction with other health and social care partners in the Selby and York patch, will be sitting down over the next couple of months to decide whether now, having had the three stars renewed, they are going to put in an application for foundation status.

"It really does now open the door for a second wave application as a distinct possibility."

Trust managers turned down the first bidding opportunity to concentrate on other priorities, but did not rule out entering the race at a later stage.

The hospital is guaranteed a payment of up to £1 million as a reward for winning three stars. A similar cash bonus will also go to Harrogate Health Care NHS Trust, which was upgraded from two stars last year. The Trust will also be invited to bid for foundation status for the first time.

But neither York nor Harrogate will be in the first wave of the new hospitals due to be announced early next year.

Under the star rating system, hospitals were tested in key performance areas.

These included emergency waits in casualty, cancelled operations, financial management, cleanliness, staff working conditions, inpatient and outpatient waiting times, total time spent in Accident and Emergency and waits for cancer treatment.

The three-star trusts performed well in every indicator.

Scarborough and North East Yorkshire NHS Trust scored only one star.

The Trust, which has been at the centre of a waiting list fiddling scandal, was penalised for failing to improve the working environment for staff.

Trust chief executive Alison Guy said staff were continuing to work hard.

She said: "We must remember that these ratings are based on performance for the year ending March 31, 2003, and it is well known that this trust has had difficulties, both with waiting times and with finances.

"Whereas the one-star rating probably reflects quite accurately where we were last year, as it is intended to do, I believe that we can look forward to a much brighter future."

Meanwhile, the CHI published star ratings for Primary Care Trusts for the first time. Craven Harrogate and Rural District PCT and Selby and York PCT will be handed greater freedoms after scoring three stars.

They hit key targets on providing access to GPs, primary care professionals, inpatient and outpatient waiting times, improving staff working conditions, helping smokers to quit and financial management.

Selby and York PCT's mental health division, which was rated separately, scored two stars.

Scarborough Whitby and Ryedale PCT scored two stars in their first review.

Spokesman Michael Whitworth said: "After only one year with trust status, the PCT is delighted that it has already achieved a two-star rating out of a maximum of three.

"This is more than we had anticipated in our first year."

The Hull and East Riding Community Health NHS Trust maintained its two- star rating.

Updated: 10:41 Wednesday, July 16, 2003