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Let's assume that Mr Farrar is correct in his assertion that 30% of capacity could go.

Let's now look at a typical town/city where the residents use its one and only hospital.

The fixed costs associated with running a site at 70% capacity probably aren't much different to 100% (when "care and maintenance" is considered), and disposal is unlikely to be an option given the piecemeal nature of the unused capacity.

So will there really be much left over to plough back into other services? Rather sceptical.