Monitor has agreed to examine proposals to transfer a hospital site, currently part of the Mid Staffordshire Foundation Trust, to local community ownership.

The foundation trust regulator has appointed a team of experts to consider the long term future for services delivered by the scandal-hit trust which has significant financial challenges.

This has raised fears the trusts smaller Cannock Hospital, in nearby Cannock Chase, could be closed.

A working group set up by Cannock Chase MP Aidan Burley have proposed the site be transferred to the community. This proposal would relate to the building and grounds of the hospital but not its patient services.

In a letter to the MP, Monitor chair and chief executive David Bennett said: “I can confirm that Monitor will ask the contingency planning team to work with you to understand options for Cannock Hospital including the costs of any proposal that you would like considered.”