Hospitals which rapidly cut their waiting lists could be rewarded with extra cash.

Surrey and Sussex Strategic Health Authority will be given more than £4.5 million over the next three years to pay out to hospitals and primary care trusts (PCTs) which have shown a marked improvement.

The move is part of a drive by the Department of Health to improve patient access to key hospital services.

It will focus first on reducing waiting times in accident and emergency departments and on cutting inpatient and outpatient waits.

Health Secretary Alan Milburn has allocated £100 million to strategic health authorities across England to set up the scheme, due to come into force in April.

Only those NHS trusts and PCTs that show significant improvements in waiting times performance will be given a payment.

There will be no payment for maintaining existing levels of performance.

The money could be spent on equipment such as scanners and computers, refurbishment of buildings, or education and training facilities.

Mr Milburn said: "This new fund will reward high-performing NHS organisations. Staff and patients will benefit from improvements in facilities.

"It will provide a positive incentive to get waiting times for treatment down. How the money will be spent will be decided by the consultants and staff who make the improvements happen."

The creation of the new fund was announced the same day capital resources were allocated.

Capital resources are divided into two areas.

The first is operational capital, which goes to NHS trusts and PCTs to maintain and enhance stock.

The second is strategic capital, which is given to health authorities for larger investments.

For the first time, the allocations cover a three-year period to give health organisations the chance to plan for the long term.

The Surrey and Sussex Strategic Health Authority is to be given about £35 million in 2003/4, £35.1 million in 2004/5 and £37.8 million in 2005/6.

Brighton and Sussex University Hospitals NHS Trust will be given almost £5 million of operational capital in 2003/4, which will rise to £5.8 million in 2004/5 and £2 million in 2005/6.

A trust spokesman said: "We are very pleased with the increase in money.

"It is useful to know exactly what is coming over the three years so we can plan accordingly."

The money could be used for a wide range of areas, including repairs and maintenance, supplying new equipment and improving fire precautions.

Other allocations include £4.8 million over three years for South Downs Health NHS Trust, £7.7 million for Worthing and Southlands and £16.8 for East Sussex Hospitals NHS Trust, which is responsible for Eastbourne District General Hospital and the Conquest Hospital in Hasting