It's part of the NHS ICS (integrated care systems) initiative. I think it's something they're doing across the board but obviously I only have experience of it from a pathology point of view. Basically they've divided the country up into regions, or 'networks', and adopting a 'hub and spoke' model, with one main 'hub' lab per region doing the bulk of the work, but each hospital maintaining a downsized 'spoke' lab dealing with acute and urgent samples. There's also planned changes to management and staffing structures, which is where I think they're planning to make most of the cost savings.
It's all based on the Carter report, Lord Carter being amongst other things, chair of the board of HSL, provider of private pathology services to the NHS...
https://improvement.nhs.uk/resources/pathology-networks/