Bupa Redwood Hospital, Redhill

Beds: 36 High dependency beds: 4 Consulting rooms: 6 Operating theatres: 2

The landmark scheme is due to start as early as April 2002, the Department of Health confirmed.

It will be the first of 20 diagnostic treatment centres promised by 2004 in the government's NHS Plan - although only eight will be fully operational by that date.

The government is hoping to drive down long waits in specialties such as orthopaedics.

The aim is a maximum of six months wait for an operation by 2005.

Union opposition

However, the move has enraged unions, which claim they have not been consulted.

While temporary measures to ease waiting lists are clearly right, it is not right to give long term contracts to private hospitals

John Monks, TUC general secretary

Dave Prentis, general secretary of Unison, said: "We are disappointed that Alan Milburn has decided to go down this route.

"We agree with the concept of diagnostic centres.

"Routine operations need to be carried out more quickly and waiting lists need to come down.

"But we disagree with simply pushing it out to the private sector," he told BBC Radio 4's Today programme.

Obviously we have got to get good value for money for the taxpayer and a good standard of care for the patients

Alan Milburn

TUC general secretary John Monks added: "While temporary measures to ease waiting lists are clearly right, it is not right to give long term contracts to private hospitals, either in the UK or abroad."

John Edmonds, general secretary of the GMB union, said: "It is clear that there are people in Downing Street and the Department of Health who care more for the well-being of private health companies than they do for the well-being of the people who elected them."

Bed shortage

Unison is holding a series of rallies around the country protesting at increased private involvement in the NHS.

Alan Milburn announced the deal

Health secretary Alan Milburn told the BBC that he was in "active negotiations" with Bupa.

"Obviously we have got to get good value for money for the taxpayer and a good standard of care for the patients."

An acute shortage of beds in the south east meant the NHS had to look to the private sector, Mr Milburn said.

But, he added, he hoped the new unit would be the first in a series of diagnostic centres, some private and some NHS, which will separate routine from emergency surgery, leading to fewer cancelled operations.

"We are moving away from a monolithic NHS controlled from the top down", Mr Milburn claimed, to a more pluralistic service, where "power is devolved to front line services and staff".

The Prime Minister's spokesman said: "There is a virtuous circle here and rather than get into arguments about where the provision is coming from, the key issue is what practically can you do to increase capacity in the health service."

Operations free

Under the terms of the deal, which is still being finalised, there will be no charge to patients.

'Short termism'

Shadow health secretary Liam Fox said he welcomed a more pragmatic approach but he suggested the move was a sign of desperation.

Dr Fox told BBC Radio 4's Today programme: "Government, despite the problems they will have with their union paymasters, are now desperate to find ways to get waiting lists and waiting times down."

Liberal Democrat health spokesman Evan Harris called the move "short termism of the worst kind".

He argued using private hospitals meant more doctors and nurses would be employed in the private sector when they were needed in NHS hospitals.

Mike Stone, chief executive of the Patients Association, said he welcomed the initiative if it would cut waiting times.

"Patients dread their surgery being postponed, but because this centre will only carry out elective (planned) operations, they will not be cancelled when emergencies come in."