Developers to cash in on London hospitals

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Mayor Ken Livingstone has already been consulted as an "important player" over the plan which would raise vital funds for the health service.

It comes ahead of an NHS shake-up by health minister Lord Darzi which includes replacing local surgeries with larger polyclinics staffed by a range of specialists.

Health czar Lord Warner told the Standard that money which could be used to improve services for patients was being wasted maintaining old and under-used land and buildings.

He said: "A lot of health buildings are not used as intensively as they might be and in some cases are barely used at all. There is a lot of resource there which could be used better."

Lord Warner, who is chair of NHS London's Provider Development Agency, said NHS officials had already begun to map the "health footprint" of certain sites including St Anne's in Haringey.

It has been identified for potential redevelopment as affordable housing for NHS staff who cannot afford London property prices.

The escalating cost of maintaining old hospital buildings means NHS London spends three quarters of a billion pounds, seven per cent of its budget, maintaining under-used buildings.

But Lord Warner said the plan would not include the sale of any key buildings .

He said: "There is not a game plan and we don't have a hit list. But you do need to force a change in the mindset of the NHS to improve the quality of facilities management."