The bill is one the most controversial pieces of legislation

John Reid said the government would do everything it could to reverse Thursday's Lords defeat over the plans.

The vote sets up a new battle between the Commons and the House of Lords.

Plans to give limited operational and financial freedom to some hospital trusts in England form the main part of the government's flagship Health and Social Care Bill.

It is not right the will of the Commons on such a major issue should just be thrown out by the unelected Lords John Reid Health Secretary

Conservative and Liberal Democrat peers joined forces to defeat the measure, which was also opposed by some Labour and independent peers.

The government lost the vote on foundation hospitals by 150 votes to 100.

'Clear will'

The bill is due to return to the Commons in a fortnight, before the end of this parliamentary session.

Dr Reid told BBC Radio 4's Today programme: "We have had our debate. It was controversial, but the Commons' will is clear.

"It is not right the will of the Commons on such a major issue should just be thrown out by the unelected Lords."

Critics like Earl Howe say the changes could be counterproductive

Critics of the foundation hospitals plans say they will damage the NHS and could result in a two-tier health service.

The bill has already caused major problems for ministers and resulted in one of the largest Commons rebellions last summer, when the government's 164 working majority was cut to just 35.

Tory peers say the government has failed to answer their concerns that the bill will not deliver genuine freedom to hospitals, that non-foundation hospitals will suffer and the whole exercise will be costly and ineffective.

Conservative health spokesman Earl Howe said he felt "genuinely disappointed" that he felt compelled to oppose "devolution" in the NHS, but said the government's proposals were flawed.

"I am desperately worried by these proposals because of what they will do to force and tie the hands of management in ways that could be profoundly counter productive for people's health care," he said.