He told a London conference of more than 550 clinical leaders from across the NHS this week that he found the allegation ‘depressing.’
Mr Lansley said the new system would encourage GPs and specialists to work together to match resources to clinical decisions, and drive up quality.
Watch our video highlights of Mr Lansley’s speech to see his full response to the critics.
He was speaking at the Maximising Quality, Minimising Cost event, organised by UCL Partners and NHS trust regulator Monitor, with GP as media partner.