HEALTH bosses are looking to set up a separate not-for-profit organisation to take over the running of services.

An NHS North East Essex report has concluded services would be best offered by a social enterprise.

The move follows a report from health minister Lord Darzi which requires every PCT in the country to carry out reviews of their provider services.

It sets out new guidelines around competition and says provider services should break away from PCTs.

NHS North East Essex’s preferred option out of seven is to set up a social enterprise.

It is drawing up proposals for the split which will be presented to its board in January and a decision is due to be made in March.

Other options include combining with another Trust, such as the North Essex Mental Health Partnership, set up a profit-making organisation or establish a Community Foundation Trust.

A health watchdog has accused bosses of wasting money on a reshuffle instead of pumping cash into frontline services.

Gordon Beare, secretary of Tendring Pensioners Action Group, said: “This is a major structural change and the PCT also proposes to bring in outside consultants, plus appoint additional senior managerial staff.

“What a waste of NHS funds! It should be spent on urgently-needed frontline services.

“Money is badly needed in Tendring for better and adequate frontline services and to waste inadequate finance on another re-organisation is criminal.”

Mr Beare has written to Health Secretary Alan Johnson with his concerns.

A North East Essex NHS spokesman said it was inevitable the reshuffle would cost money but that the Trust did not have a choice.

He added it would make it easier for the PCT to commission services in the best way.

An example is the privatisation of the Green Elms doctors surgery in Jaywick earlier this year after the PCT was struggling to find doctors to run it, he said.

He said the social enterprise would retain the expertise to run district nurses and children’s services, for example.

Staff would be transferred from the PCT to the new organisation under the plans.