Yes, the Tory plan for the NHS is a sibling of the American "starve the beast" model where you make it hard for a public service to function effectively then go "see it doesn't work, it needs to be got rid of" when it inevitably has issues.

The end game is to privatise it, making money for tory mates in the process and removing yet another social benefit paid out of tax revenue.

The problem for the Tories is that even Tory voters love the NHS, so they can't just privatise straight out it like they did everything else. They need to make a case for why, they need to break the British attachment, or at least get people to care less.

Be aware, if you're not, that stealth privatisation has already been done through outsourcing mandates. This increases costs (because the outsourcer wants to make profits) rather than saving it, helping accelerate their case.