The NHS spent almost £3 million making staff redundant in Birmingham and the Black Country in just a year, Ministers admitted.
The 2011-12 spending followed controversial health reforms, including the abolition of Primary Care Trusts, the bodies which used to commission healthcare on behalf of patients.
Making staff from Birmingham East and North Primary Care Trust redundant cost £775,000, according to Ministers.
And redundancies cost Dudley Primary Care Trust £855,000.
Most of the money was spent on pay-outs to workers forced to take compulsory redundancy.
The figures also included the cost of “exit packages” for other staff who left the trusts.
And the total cost of making NHS staff redundant is likely to be higher because cash was also was spent in the previous financial year.
The Department for Health insisted the reforms would save money in the long run and lead to a better service for patients.
A spokesman said: “These are one-off costs.
“By investing in these changes we will be able to reduce unnecessary bureaucracy and free up extra resources – £5.5 billion during this Parliament and £1.5 billion every year thereafter – for patient care.”
But Birmingham Labour MP Steve McCabe said many of those made redundant would end up being re-hired by the new NHS Commissioning Consortia, which are taking over the role of Primary Care Trusts.
He said: “This is not a saving. It’s £3 million being taken out of the NHS and the tragedy is this is money could have been spent on patient care.”
And Khalid Mahmood (Lab Perry Barr) said: “Money is being taken out of the NHS which will have an effect on the health care of my constituents.
“The Government is not being honest about the effect of these changes because back office functions need to be carried out by somebody.
“They will either end up recruiting the staff again or – to some extent – the burden will shift to GPs and other medical professionals.”
