A policy of separating all NHS community health services (CHS) from commissioning organisations (then primary care trusts) was launched in 2008. Some CHS were to become foundation trusts (FTs—in this case, CFTs). FTs are NHS organizations with greater autonomy from the centre, able to retain any surpluses, which are thought to be able to improve efficiency and quality of services. Those CHS not destined to become CFTs were to be merged with NHS mental health and/or hospital services, or to be ‘spun out’ of the NHS to become independent not-for-profit organisations. We observed the changes made during the preparatory period, and the expectations of the effects of FT status of the managers of CHS and their NHS commissioners, together with those CHS not on the CFT pathway. We found that all CHS in the study were becoming more business-like, and starting to improve service delivery and productivity, irrespective of whether they were destined to become CFTs. Although increased autonomy was appreciated, most CHS wanted to stay within the NHS. Some managers were concerned they would lose their autonomy when merging with other NHS services. The changes and uncertainty about organisational policy for CHS have been disruptive and time consuming.