HEALTH chiefs will use part of the extra £28m cash settlement for the NHS in Worcestershire to tackle waiting lists and the twin killers of cancer and heart disease.

Secretary of State Alan Milburn yesterday announced a £354m cash settlement for the next financial year, an increase of 8.06 per cent.

But pay awards for nurses and doctors plus drug price increases will use up a sizeable chunk of the additional money awarded to Worcestershire Health Authority.

Mike Ridley, the health authority's director of finance and commissioning, said money would be ploughed into reducing the number of out-patients waiting more than three months and patients waiting more than 12 months for admission to hospital.

"We've been working to make sure there are enough clinicians and operation theatres to bring down waiting times," he said.

"We'll also use the money for the big killers of cancer and heart disease, ensuring early diagnosis and short waits for cancer treatment."

He also said money would be spent trying to get people out of hospital to tackle the problem of bed-blocking.

Nationally, health authorities have been awarded an extra £2.9bn, or 8.5 per cent.

Herefordshire will receive an additional 8.65 per cent to £117,787,000.

Mr Milburn pledged further increases of at least 6 per cent in 2002/03 and 2003/04.

Health authorities will also be given a share of a £100m performance-related fund next year, rising to £500m by 2003/04.

Those meeting targets will be given greater freedom to develop services and those failing will get help through the new NHS Modernisation Agency.

"We'll no longer tolerate a culture of second rate services in any part of the NHS and the lottery in patient care has got to come to an end," said Mr Milburn.

As part of the NHS Plan, 60,000 more intermediate care beds will be created to tackle bed-blocking in hospitals, and an extra £450m will be spent on better drugs and treatment for cancer and heart attack victims.

Cancer patients will have a maximum one-month wait from urgent referral by a GP to beginning of treatment by December next year.

Patients should be able to get a GP's appointment within 48 hours by 2005, and be seen in casualty within 75 minutes.