St Helier and Epsom would keep X-ray, surgery and outpatient services

A spokesman for Epsom and St Helier University Hospitals NHS Trust said a new review was being carried out after two site proposals fell through.

The Health Emergency group said that meant the plan would be effectively scrapped on the grounds of cost.

But an NHS boss said that claim was completely untrue.

The plan is part of the Better Healthcare Closer To Home (BHCH) programme for Merton and Sutton (south London) and the area covered by the former East Elmbridge and Mid-Surrey Primary Care Trust.

Its aim is to create a single critical care hospital supported by local care hospitals.

'Appropriate strategy'

It would see St Helier Hospital, in Carshalton, and Epsom General Hospital having urgent treatment centres, handling fewer critical and trauma cases than their current accident and emergency departments.

BHCH began in January 2005 with a site in Sutton proposed for the new critical care hospital.

Health Secretary Patricia Hewitt then said it should be built at St Helier, but that location was dropped in August this year because of planning problems.

That has led to the current review by NHS London.

"We're still confident the review will find it's an appropriate strategy to go ahead with," said the spokesman for the Epsom and St Helier trust.

Programme director Robert Barr added: "We strongly believe that the BHCH model of care... will significantly benefit patients and staff."