The government has agreed to withdraw and re-write controversial proposals on contracting out in the NHS in England.
The regulations were published two weeks ago to provide guidance on how the NHS reforms should be implemented.
But critics had argued they would open up many more services to competition from private companies and could disrupt services for patients.
Health Minister Norman Lamb told MPs the wording of the regulations had "inadvertently created confusion".
He said there would be no privatisation of the NHS and that competition was only a means to improving services not an end in itself.
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