The hospital went from one to three stars in the rating system

The West Suffolk Hospital in Bury St Edmunds received the maximum three stars in its performance rating by the Commission for Health Improvement on Tuesday.

It had formerly been rated a one-star hospital.

The distinction means it is now allowed to apply to become a foundation hospital, which would give it greater independence from Whitehall and the ability to raise cash through private borrowing.

John Parkes, the Chief Executive of West Suffolk Hospitals, said: "We hadn't actually explored foundation hospital status until we'd actually got the three stars.

"That door is obviously now open to us, and it's something that the trust board will now be considering."

This week, the Norfolk, Suffolk and Cambridgeshire Strategic Health Authority was awarded the largest number of three-star acute trusts and primary care trusts in the country.

Virtually all the NHS hospitals which expressed an interest in becoming foundation trusts are to go ahead with their applications.

Opponents of the foundation plan have said they fear the changes could lead to a "two-tier" health system, with foundation trusts improving while conventional trusts do not.