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"The plan is to pay a reduced fee to hospitals for each extra patient they take on", reports Hugh Pym
Hospital chiefs have hit out at plans to reduce funding for specialised operations and treatments NHS trusts provide, including some cancer care.
Some 345 specialists have written to NHS England saying the changes could mean longer waiting lists and avoidable deaths, the Daily Telegraph reports.
Under the plans, centres treating more patients than expected would receive just half the extra treatment costs.
NHS England says these services have already seen a big increase in funding.
The body channels taxpayers' money to the NHS trusts that provide services.
Its proposals - due to come into force in April - aim to curb a growth in spending in this area.
NHS England says providers had seen their incomes rise by more than £1bn over two years.
Curbing this growth in spending would free up resources to be spent on other services including care for mental health patients, ambulance provision, casualty departments and GP care.
'Lower quality'However, the letter quoted by the Daily Telegraph says the proposals will leave hospitals with a choice of treating patients and incurring a financial loss, or not treating them at all.
"The clinical consequences of these longer waiting times and a lower quality service to patients with conditions such as heart disease, liver disease, leukaemia, complex cancers etc will be severe," it reportedly says.
"There will inevitably be avoidable deaths as patients die on waiting lists or find that their disease has progressed during the wait for treatment, to the point that it is no longer curable."
A consultation period ends on Wednesday with a final decision expected early next year.
NHS England said in a statement: "We will listen carefully to all consultation responses on these proposals, while recognising that providers of specialised services have enjoyed income increases of over £1bn over the past two years."
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