NHS managers in Oxfordshire have admitted they will have to fight to keep staff if hospitals in London win foundation status.

Unions and staff groups are concerned that hospitals awarded the super-status could become magnets for NHS employees keen to work for organisations with a good reputation.

The Oxford Radcliffe Hospitals NHS Trust is already trying to tackle high staff shortages, but the problem could worsen if it has to compete against foundation trusts.

Hospitals awarded three stars in the NHS rating system can bid for foundation status -- part of the Government's Health and Social Care Bill, which earlier this week won its second reading in Parliament, despite heavy opposition.

As a poorly-rated one-star trust, the ORH -- responsible for Oxford's John Radcliffe, Churchill and Radcliffe Infirmary, and The Horton, Banbury -- has not been allowed to apply in the first round.

But seven neighbouring trusts, including Oxford's Nuffield Orthopaedic Centre, have made a bid. A number of major London hospitals, where Oxford staff can earn higher wages, are working towards foundation status.

The Gloucestershire Hospitals NHS Trust, including Gloucestershire Royal Hospital and Cheltenham General, has also tendered a bid.

An ORH spokesman said: "We work co-operatively on recruitment projects with staff at the NOC and wouldn't see their foundation status as an issue for us.

"However, we know that we already lose employees to London hospitals, and know we will have to work hard to keep staff locally."