Practice-based commissioning (PbC) will help the NHS improve its productivity without compromising the quality of patient care, says the NHS Alliance.
Commenting on the review of NHS funding conducted by the King's Fund, the NHS Alliance agrees that the healthcare service needs to become more productive.
It says the way forward is PbC, where local GP practices can manage their own budgets and use savings to improve patient services.
PbC helped services in Huntingdonshire to save £14.5 million across the country, says the NHS Alliance, and services in Bournemouth and Poole save around £1 mn.
Michael Sobanja, NHS Alliance Chief Executive, said: "The best decisions about use of resources are generally those taken at the frontline, by those who are closest to patients and understand the needs of local communities.
"Clinicians and managers working together through PbC are producing real benefits for patients and for tax payers.
"They show that tit is possible to squeeze the maximum value out of every pound spent at the same time as providing better care."