Ministers have claimed that the latest assessment of NHS hospitals shows standards are improving across England.

But opposition parties have dismissed the claim saying the Department of Health performance ratings are meaningless.

A total of 68 of England's 304 trusts received a full three stars in this year's ratings.

However, 10 trusts received no stars at all and standards were found to have fallen in 36 trusts.

The hotel-style grades will be used by ministers to decide which hospitals can apply to become foundation trusts and which should be 'franchised out' to new management teams.

Zero star trusts

Bedford NHS Trust Bedfordshire and Luton Community Health Trust Barnet and Chase Farms Hospitals NHS Trust Hinchingbrooke Healthcare NHS Trust Portsmouth Hospitals NHS Trust Royal United Hospital Bath NHS Trust South Warwickshire General Hospitals NHS Trust South Warwickshire Combined Care NHS Trust United Bristol Healthcare Trust Weston Area NHS Trust

All three star hospitals will be apply to apply to become foundation trusts. If successful, they will be given greater freedom from the government and will be able to set their own targets and priorities.

In contrast, 'failing' trusts are to be ordered to draw up urgent plans to improve their services.

Most of the trusts which received no stars will have just three months to show signs of improvement or face being franchised out.

Trusts where managers have already been replaced or franchised out will be given 12 months to turn their services around.

Overall, 46 acute trusts were awarded three stars, up from 35 last year. A total of 77 trusts got two stars and 35 received one star.

Eight acute trusts were given a zero rating, including three trusts who had come bottom of the league last year. Two of these had also been 'franchised out' to new management in an effort to improve services.

The tables show that standards improved in 47 trusts compared with last year but deteriorated in 36.

The tables also give details of the performance of specialist trusts, which include specialist eye or children's hospitals.

Of these, six received three stars, 12 two stars and two one star.

Mr Milburn said performance is improving

The Department of Health also assessed ambulance trusts - 12 were awarded three stars, 16 won two stars and four got one star.

Mental health and community trusts were included in this year's tables for the first time.

Of these, four were awarded three stars, 67 were given two stars, 13 received one star and two were given a zero rating.

The new primary care trusts were also examined but were not given star ratings since many have only been in operation since April.

All trusts were assessed on a variety of targets, including patient waiting times, deaths after surgery, cleanliness and finances.

Among the biggest movers were Brighton Healthcare, Medway, Surrey's Epsom and St Helier Trust.

Each received a zero-star rating last year but have now been awarded two stars after improvements in recent months.

Among the losers were Bedford NHS Trust in Hertfordshire and Hinchingbrooke NHS Trust in Huntingdonshire.

Both received two stars last year but have dropped to the bottom of the league table this year.

Managers at many of the zero-rated trusts criticised their ranking saying they were based on old data and did not reflect recent progress.

Health Secretary Alan Milburn said the ratings, which are based on more criteria than last year, showed the health service was getting better.

This year's ratings may damage morale among nurses

Beverly Malone, RCN

"We have raised the bar. Hospitals have raised their game. Performance overall is improving. The NHS is moving in the right direction but of course there is a long way to go," he told the BBC.

However, Shadow Health Secretary Dr Liam Fox said: "The fact that 36 acute trusts have actually deteriorated since the last assessment is proof - though none were needed - that Labour's approach of simply throwing money at the system is not the answer."

Liberal Democrat health spokesman Dr Evan Harris said: "This is a disgraceful exercise in scapegoating. Meaningless measures imposed by politicians end up being fiddled by pressurised trusts."

Staff criticism

Doctors, nurses and hospital managers have also criticised the ratings.

Dr Peter Hawker, chairman of the British Medical Association's consultants committee, said they created "a pressure cooker atmosphere" in hospitals.

He added: "Consultants share the government's desire to improve services for patients and speed up access, but the flood of new targets, initiatives and performance measures is destabilising the NHS."

Beverly Malone, general secretary of the Royal College of Nursing, said: "This year's ratings may damage morale among nurses, many of whom are doing a good job under excessive pressure."

Gill Morgan, chief executive of the NHS Confederation, which represents health service managers, said "more robust and reliable" data is needed if an accurate of the NHS is to be provided.

Stuart Marples, chief executive of the Institute of Healthcare Management, added: "We still have severe reservations about damning whole multi-million pound organisations from a snap shot of indicators."