The Co-operation and Competition Panel today called in the merger of Barts and the London, Whipps Cross and Newham hospitals for further scrutiny.

The advisory body said there was “a realistic prospect that the merger may lead to a material adverse effect on patients and taxpayers”.

The panel added: “The CCP will consider in detail the extent to which other providers of local acute, specialist and community services located nearby would offer a credible alternative to the merged organisation.”

It said the merger might also create the temptation for the new organisation to “influence” referrals so they went to its own specialist services rather than to other providers.

The notice to proceed to a more detailed investigation said: “We will also consider similar issues in relation to local acute hospital services and community healthcare service referrals.”

The merger, which would create England’s first £1bn-turnover provider organisation, is due to have its outline business case approved by NHS London on 4 August.

The panel will report back on the proposal by 17 November.

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