Moves to allow the public and private hospital to compete on fixed price for the treatment of NHS patients are potentially endangering the lives of patients.

A leading health economist has warned that it will lead to criticism over the plans set by Andrew Lansley, the health secretary.

Carol Propper, a professor of economics at Imperial College London and at the University of Bristol, said that allowing price competition “raises the prospect of two-for-one deals on surgery and cut-price consultations for certain specialities. At the same time, in order to provide services at these prices, quality suffers”.

By taking this step, Andrew Lansley is ignoring all the evidences which have the impact on price competition in the hospital sector.

Although the Health Department said the cash which will be saved by price competition could be spent on extra services such as exceptional circumstances and quality accounts which demonstrate their quality of care.

Professor Propper favours the competition in health care that allows NHS patients to choose the hospital within the system of fixed prices for treatment that could reduce the death rates.

Fixed price competition could bring better management in hospitals and better outcomes for patients.