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Contrary to assurances given at the beginning of fund holding, some years ago, a two tier system is very much alive and kicking. Non fundholders have often suspected that a two tier system is in operation, but have been unable to prove it. Unfortunately, we have just had confirmation from both our Health Authority (Lincolnshire Health) and from one of our local hospital trusts (Peterborough Hospitals NHS Trust), that for routine operations, our patients will have their operations suspended until after 31st March 1997. This is due to "over performance" on the part of Peterborough Hospitals NHS Trust, or "underfunding" by Lincolnshire Health, depending on how you look at it. There has been an unexpected rise in the amount of emergency and urgent work done by the Trust. Unfortunately, although the rise in emergency and urgent work (presumably) arises from both fund and non-fundholder patients, the measures to reduce expenditure will only affect the patients of non-fundholders. We are the only non-fundholding practice in our town (actually, we are community fund holders, but we don't fund in-patient proceedures). We feel very angry about this, but powerless to do anything. Ruth Livingstone --http://www.Stamford.co.uk/littlesurgery %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%