A Preston councillor has called for health chiefs in Lancashire to resign after controversial plans for a private company to run a health centre in the city were scrapped.
Only a month ago health bosses said they would go ahead with the scheme despite public opposition and the Government saying it would not back it.
Members of the group Keep the NHS Public led the campaign against Clinical Assessment Treatment and Support (CATS) centres in Lancashire being contracted to the South African firm Netcare.
Campaign co-ordinator and Respect councillor Michael Lavalette, said: "It was clear in January that this scheme did not have the support of the people of Preston yet the PCT ignored us.
"The Government announced they no longer supported the Lancashire PCT plans over a month ago because they were uneconomical but the PCT ignored them.
"Now they have recognised we were right all along. But how much has this farce cost? Surely those responsible should do the honourable thing and resign?"
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The trust has halted discussions with Netcare UK and is now proposing to re-tender the contract.
NHS North Lancashire chief executive Ian Cumming said: "The decision to stop the current process is not a reflection on Netcare or their ability to provide high quality services. PCTs in Cumbria and Lancashire are still committed to commissioning services for patients that are easy and quick to access and of a high clinical standard.
"This decision does not mean the local NHS has moved away from the concept of CATS services."
The scheme was initially a Government initiative to improve patient care and cut waiting lists.
Netcare was unavailable for comment at the time of going to press.
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