So-called austerity is at the root of the current NHS problems. When Osborne sent his departments away to come up with plans for cuts, each department came up with its own plans. Local government was particularly hard hit and councils were forbidden from raising council tax for political reasons.
At the same time, some NHS responsibilities were transferred to local authorities without extra cash. Inevitably, local authorities had to make severe cuts and these included public health and social care. When the Cabinet sat down to discuss these cuts, the Health Secretary should have realised that the cuts would impact on the NHS and protested. Maybe he did, but was shouted down.
There is written evidence that some former and current ministers (Hunt, Gove, etc) want to decrease the role of the state in public services, so it's probable they knew what they were doing, either for personal and/or ideological gain - either that, or they're incompetent.