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GPs would take over all commissioning from PCTs under Conservative Party plans for the NHS.
The Tories would also dismantle strategic health authorities, streamline PCTs and halve the number of 'arm's length bodies' under plans to save almost £8 billion.
The proposals, which will form the basis of the party's manifesto for an expected May election, were drawn up as a result of its James Review into public sector spending.
The Conservatives predicted savings of £636 million from GPs taking over commissioing from PCTs and said the move would hand power back to GPs.
A new NHS Payments Service would allocate budgets to GPs and other NHS organisations according to the treatment they deliver to patients.
A spokesman for the Liberal Democrats said the plans would increase paperwork for GPs and mean they had to work longer hours.