Of course it needs reform, but it's not going to be cheaper than what's there just now if you also want it to be better.
What we have now is "cheap" NHS.
You can slice and dice whatever way you like - run it "like a business", or bring in European style insurance with copays, or move care from one place to another place, or focus on preventative care (assuming you're not planning to let those who haven't managed to prevent up to this point whistle). All of this will cost an unholy fortune up front which governments hate.
Firing managers (and employing adminstrators to manage the new fee infrastructure...and more managers to manage them) won't touch the sides.
It can be good and quick and expensive.
Or good and slow and cheap(er).
Or bad and quick and cheap(er).
So which do we want? Bad or slow (Y no both??), because no-one's willing to pay Euro charges or set up costs and it would be suicide for any government that tried.
Why the delays to refer and treat? Because they don't have the staff or the money and if you can delay then you can hope it moves on to a different budget sheet, or maybe next year you don't have to commit to a 10% cut in your service.