Staff at a pioneering employee owned hospital welcomed Government minister Francis Maude when he dropped in to meet patients and try out their equipment.

Mr Maude has praised Leatherhead Community Hospital, in Poplar Road, Leatherhead, for being a good example of how the Conservatives' Big Society concept can work.

The Cabinet Office minister and paymaster general had a go on its gym machines last Wednesday, and met Tricia McGregor and Jo Pritchard, who founded owner Central Surrey Health in 2006.

Central Surrey Health, a not-for-profit organisation owned by the nursing and therapy teams who work for it, is set to mentor other public sector spin-offs as part of the Government’s new “pathfinder mutuals” initiative.

Mr Maude said: “The 12 pathfinders will be supported by expert mentors from some of the country’s most successful businesses and leaders in employee ownership models.

“We are incredibly grateful for their support, the involvement of these successful employee owned businesses further demonstrates the viability of public sector mutuals and I am excited about what this initiative has the potential to achieve.”

Ms Pritchard, joint managing director of Central Surrey Health, added: “Central Surrey Health is delighted that the benefits of employee ownership are recognised and being actively encouraged.

“We’re convinced of the benefits of the model for public sector services. In our experience, being employee owned means we’re more fleet of foot and are able to do things differently.

“This is resulting in increased efficiencies, reduced waste and improved patient experience.”

Central Surrey Health was the UK’s first social enterprise to leave the NHS and set up as an employee owned business. It is contracted to deliver therapy and community nursing on behalf of the NHS and other public services organisations.