Huddersfield health chiefs are to start talking about what to cut and what to keep amid a lack of cash from the NHS.

Frustrated officials at Greater Huddersfield Clinical Commissioning Group (CCG), who fund the majority of local health care, have agreed they must start discussing areas they “can no longer support”.

The comments were made at the CCG’s board meeting on Wednesday as GP members and managers noted a £1m gap in their funding.

£2.2m of contingency money has already been used to partially claw back a £4.7m overspend this year.

£3.9m of cuts have already been found.

Finance chief Julie Lawreniuk said they had “ducked and dived” to mitigate the funding headache but now needed to get serious about ongoing cost cutting for 2015/16.

“At the moment we spend more than we’re getting in,” she told members of the board. “We need to look at things we can no longer support or can reduce spending on.”

Mrs Lawreniuk said managers would meet with clinicians to plan what could go and where savings could be found.

Asked by GP member Ramesh Edara if the CCG would back doctors who came up with ideas by investing cash in them, she responded: “I would love to, but in the position we’re in we can’t invest until we stop spending.

“Until we decide some things we can reduce spending on, or stop spending on, we don’t have that luxury.

“I’m not saying we don’t have any money. We have £270m. It’s a lot of money but we need to be more efficient.”

GHCCG is currently forecasting almost a £1m underspend on its fixed £123m contract with Huddersfield Royal Infirmary and Calderdale Royal Hospital as more and more patients are sent to private health firms such as BMI Huddersfield in Birkby and Spire Hospital at Elland.

Patients are also referred to NHS hospitals in Leeds and Bradford and not-for-profit health company Locala.

Members noted the underspend almost matched the hole in their finances but Mrs Lawreniuk said they could not re-coup the £1m cash, due to the fixed price deal.

The CCG has decided it will no longer agree to a fixed price contract and would use the reduced spend at the two local NHS hospitals as a benchmark for the 2015/16 budget.

Chief executive Carol McKenna said the previous two years’ fixed contracts had benefitted the CCG and 2014/15 was the first time an underspend had occurred.

GHCCG in partnership with North Kirklees CCG, is currently tendering for a £284m Care Closer To Home contract to provide more services outside of a hospital environment, in the community and in people’s homes.