"This is a well thought through and credible plan that deserves a fair hearing. I urge the public, politicians and staff from all the trusts affected to get fully and constructively involved in the consultation and help shape the services of the future. 

"The NHS is under intense financial pressure. A growing number of organisations are finding themselves being pushed towards a cliff edge. Tough decisions need to be taken if they are to recover their financial footing and deliver better care.

"When such problems emerge, you have to take the bull by the horns and produce a joined-up, whole-system solution. All our analysis shows the problems cannot be resolved by looking at one organisation in isolation.

"We fully support the process the administrator is following, but it's a shame this has to be settled against a backdrop of crisis. NHS trusts need the political backing to grasp these nettles much sooner so they don't end up in this predicament."

On the private finance initiative (PFI), Mr Farrar added: "South London is a good example of a trust where it would be simplistic to saddle PFI schemes with the blame for all of the problem. To get to the real issues you have to dig deeper."