A study found the proposed scheme was unaffordable in the current financial climate, the council said.
NHS trust blames an electronic appointment system for a backlog of more than 9,000 letters.
Eight out of 10 areas with highest exclusion rates are in the North East, Yorkshire and Humber.
Where does your council tax money go and can you fight any increases?
Dr Michael Mosley explores the link between stress and over-eating
Team news as Salford Red Devils host Hull KR in Friday's Super League fixture at The AJ Bell Stadium (19:30 GMT).
Rudy Gestede's first brace for Middlesbrough helps keep their play-off push on track with victory over Hull.
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