The chief executive of Imperial College Healthcare Trust is stepping down.

Mark Davies will leave the £940m-turnover trust at the end of this year to take up a new role with the NHS Trust Development Authority.

Mr Davies was appointed permanent chief executive in February 2012 after serving as an interim since May 2011.

In a statement he said: “Monitor – the regulator for health services in England – is always keen to ensure a proper degree of continuity in the leadership of NHS trusts as they move towards and then become foundation trusts.

“I have now been the chief executive here at Imperial College Healthcare for two and a half years and this important need for ongnoing continuity has led me to ask myself whether I really want to remain at the helm for what might be another two and a half years or even longer.

“I have been discussing with David Flory, the chief executive of the NHS Trust Development Authority, the need for experienced leaders within the NHS to share their expertise across the health system and with his encouragement I will be exploring how my experience at Imperial College Healthcare can be put to best effect across the wider NHS.”

The trust’s chair Sir Richard Sykes said: “[Mr Davies] has made significant and substantial progress here at Imperial College Healthcare. He has turned around our finances, he has improved systems and processes, he has achieved targets and improved outcomes. I thank him for his tremendous efforts and I know his talents will continue to be used to good effect.”

Sir Richard was appointed in December 2011. He was previously NHS London chair, and resigned from that role in 2010 in protest at Andrew Lansley’s sidelining of the Healthcare for London service reorganisation plan. He was rector of Imperial College London from 2001 to 2008, overseeing the creation of Imperial Academic Health Science Centre.

Imperial has not yet announced an acting chief executive or permanent successor.