The NHS is considering a deal with specialist private companies to create an expansion of new primary care health centres – at the price of an increase in practice rentals, it was reported today.

The three companies already own 850 medical centres – and say that between them they could build 750 more.

Under the plan the three companies would charge higher rents, raising some £200 million a year, the Times reports.

The paper names Octopus Healthcare, Primary Health Properties and Assura as being involved in talks with NHS England over a new private finance initiative type deal.

Dr Gavin Ralston, British Medical Association spokesman on GP premises, told the paper: “Urgent investment is undoubtedly required, but we should treat these proposals with a high degree of caution.

“A considerable question mark exists over whether PFI-type deals deliver good value for money to the taxpayer.”

Tim Meggitt, from Octopus Healthcare, told the paper: “This investment in the primary care estate could ensure that government priorities of delivering necessary efficiency savings and keeping people out of costly hospital wards and in the community are met.”