Private companies could for the first time be invited to take over the running of failing NHS hospitals and health bodies under government plans to be detailed on Wednesday.
Health Minister Ben Bradshaw will outline a scheme designed to establish minimum levels of quality, safety and financial management for every hospital and health authority in England.
The controversial programme will include giving NHS Chief Executive David Nicholson the power to remove local management and replace them with executives from other parts of the NHS or the private sector.
Ahead of the announcement, Bradshaw told Channel 4 News that the private sector "can bring competition which can help the National Health Service in a particular area increase its performance.
"What we've never done before is to allow the private sector to take over the running of a whole hospital in the form of a franchise, which is one of the options that would be included in this performance regime," he said.
Last year the NHS watchdog the Healthcare Commission identified 20 hospitals and health authorities as "weak" in their quality of services and use of resources.
The British Medical Association, which represents doctors, said it had grave concerns about the move.
"This is part and parcel of the market in health care which brings winners and losers, and in those losers the Government is bringing in the private sector - effectively privatising part of the NHS," Jonathan Fielden, chairman of the BMA's Consultants Committee, told Channel 4.
