A mini hospital is planned for Basildon, as part of a Department of Health initiative to cut waiting lists.

The centre, specialising in orthopedic care and post-heart attack treatment, will provide around 17,000 extra treatments a year to NHS patients from next autumn and create 400 jobs.

Private firm Mercury Health is planning to run the centre in a converted warehouse building next to the Festival Leisure Park, offering 16 inpatient beds, a three-bed high-dependency unit and room for 12 daycare patients.

A Department of Health spokeswoman said: "This type of centres has been introduced to cut the time patients have to wait for routine procedures and deliver a greater choice."

Mercury is finalising a £36million-a-year contract to provide surgical, orthodontic, rehabilitation, sexual health and family planning services across Essex.

Two smaller centres, one at the Phoenix Hospital in Southend and another at Braintree, will cater for an extra 12,000 appointments between them.

Mercury Health chief executive Peter Martin said: "The wide range of services will provide the population of Essex with an even wider choice of access to high quality local services."

However, the plans sparked fears about the financial impact on Basildon Hospital.

The new centre will concentrate on less serious cases, leaving the hospital with more costly, lengthy procedures.

Hospital chief executive Alan Whittle said centre could take 75 per cent of the hospital's current orthopaedic inpatients and 60 per cent of its orthopaedic day surgeries.

This could lead to an £11million a year reduction in Government funding, Mr Whittle said.