The NHS Gloucestershire’s board voted unanimously to set up a new NHS trust to run nine community hospitals, including Stroud Hospital.
It follows a consultation process which saw more than 2,500 people respond – 96% of those calling for the services to remain part of the NHS and not be put out to tender.
The town council has strongly objected to plans to allow the NHS services to be taken over by a private provider.
It took a leading role, organising a public meeting where more than 400 people spoke out against the proposal.
For a legal challenge from Stroud pensioner Michael Lloyd, NHS Gloucestershire agreed to a carry out a full consultation to allow people to have their say about plans to allow a social enterprise company to take over the running for the £400 million worth of services.
The town council formally objected to any proposal to take the services out of the public sector and encouraged the public to have their say.
More than 33% of the 2,500 votes came from Stroud District.
Stroud deputy mayor John Marjoram said: “We are pleased with the huge response from the public in the consultation and that the NHS Gloucestershire board has listened to the people.
“There is no doubt that we, as a community, do not want our health services to be run by a public provider. We are very proud of the NHS and believe it is the most fair health system.”
In a recent survey carried out by the town council, 94% of respondents agreed with the town council’s support for protecting the NHS and its campaign to ensure residents’ views were listened to and acted upon.