Medical services are to be cut by £100m as part of a package of NHS reforms designed to ease the financial pressures of the NHS in England.
The Health Secretary, Jeremy Hunt, said hospitals would see an additional £4.4bn cut to the NHS budget as part the reforms announced by the government.
The Department of Health said it would be putting the £400m into a trust fund to support hospitals with the most urgent needs.
Mr Hunt said hospitals could now expect to be able to provide a range of specialist care.
Health secretary Jeremy Hunt is looking at ways to help the NHS as it prepares to cut £100million of its budget.
Hospitals will now be able, for the first time, to take over operations from private operators in some cases.
He said the Government was looking at how best to ensure the NHS could provide the best possible care for patients.
The £400million will go towards new trusts that will offer better services and reduce wait times for some patients.
The Government said the plans would also bring about more investment in hospital operating theatres, a key part of the health service.
Mr Hunt said there would be a further £300m a year from 2019-20 to help hospitals deal with the cost of running their services, as well as support for new centres and new hospitals.
“The NHS is already doing a fantastic job with its £300 million budget and we want to ensure that it continues to do so.
We know that patients are struggling to access essential services and that this will not go on forever.”
That’s why we are taking action to get us out of this financial squeeze.
We have a long-term plan in place to tackle the challenges of the future and we are going to do that through these reforms.
“He added: “We want the NHS to be a world leader in providing the best value for money in terms of medical care.
This includes better planning, better prioritisation, more support for the most vulnerable and better outcomes for patients.
“Mr Cameron said he was “extremely confident” that the reforms would save money for the NHS and that it was the best way to deal with an ageing population.
Labour has pledged to reverse cuts in spending by 10 per cent in real terms by the end of this Parliament, but the government has said it will use its powers to try to keep its plans.
Last night the Health Secretary said he would not allow any more cuts in hospital services.
I am committed to getting our NHS back on track.
This will not happen if we do not get the public sector back on the ground, Mr Hunt told the BBC.
But he warned that the Government’s reforms would not be easy to implement.
One of the key areas of concern was the NHS’s ability to cope with a shortage of doctors, nurses and hospital beds.
Many hospitals are also struggling to cope after they were forced to lay off staff following the financial crisis, and the health secretary said there were still long-standing shortages of medicines and surgical equipment.
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We know there are still lots of problems, but we know the NHS can still be the best service in the world, and we have to do everything we can to make sure that happens,” he said.
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