The government has launched a report which earmarks the "vast potential" of social enterprises for reforming public services.

Healthy Business: A Guide to Social Enterprise in Health and Social Care Today is the result of extensive research from the Social Enterprise Coalition and industry legal specialists Hempsons.

Nine detailed case studies show how businesses that exist for a social purpose can bring added benefits to public services, such as helping to break down bureaucracy.

Health secretary Patricia Hewitt said: "Social enterprises offer real potential for improving our health and social care services, whether they are innovative community-owned hospitals, groups of nurses running services from the bottom up, or businesses that train the unemployed to be skilled and committed carers.

"This guide will help both commissioners and new social entrepreneurs, from health workers to patients, users and members of the wider community understand how and why the different social enterprise models work so well," she added.

The report was received by an audience of health policy makers, including representatives from Primary Care Trusts, local authorities and professional bodies.