The local primary care trust chose United Health Europe

United Health Europe was chosen as the preferred bidder in January by local health chiefs to run two practices.

But the deal has not been finalised as a local resident launched a High Court bid against the move, arguing the consultation was not run properly.

The government has said the decision would affect other parts of the NHS.

Last year, the government said it wanted to see a range of providers running community NHS services.

We must keep our NHS public at all costs. The government can't keep bringing in private companies - it's like sharing the housekeeping money with a stranger Pam Smith, local resident

To date, much of the involvement has been in the hospital market, although there are a small handful of NHS GP services run by private organisations.

United Health Europe was chosen by North Eastern Derbyshire Primary Care Trust to run the Creswell health centre, which has two GP practices, from a short-list of six after 48 different providers expressed an interest.

The move was expected to herald the start of a new wave of private involvement in GP care.

The case hangs on whether the PCT gave enough weight to the views of local residents.

Campaigners believe private firms could be put off from bidding for other NHS contracts if the court rules residents should be given more of a say over local services.

Money

Pam Smith, the local resident and Labour parish councillor at the centre of the case, said several other local candidates were overlooked by the trust when it considered who should run the health services.

Ahead of the case, she said: "My parents and family have paid in to the NHS so it's there for us.

"We must keep our NHS public at all costs. The government can't keep bringing in private companies - it's like sharing the house-keeping money with a stranger.

"The stranger will take the money and leave us with nothing. I'd chain myself to the surgery door before letting United Health in."

At the hearing, counsel for Ms Smith said the PCT had a legal duty to consult patients under section 11 of the Health and Social Care Act, but had made only very limited contact with the local community.

The community had been vociferous in championing solutions and willing to engage - but found itself in a situation where its proposals had been rejected in favour of an untested formula.

The PCT argued that as the fundamental nature of the service had not changed, there was no legal requirement for extensive consultation.

A spokesman for the PCT said: "We feel with have acted in good faith and with integrity throughout."

Javan Herberg, appearing for Health Secretary Patricia Hewitt, said the minister was especially interested in the case because the judge's ruling on whether there was adequate local consultation would affect other PCTs, and the NHS generally.

Mr Justice Collins reserved judgment, saying he would take time to consider his decision.