Mr Paterson was told to develop a waiting list, but said he will not be bullied into it.
Mr Paterson, who has been a surgeon for 17 years, said he ran a diary system which meant seeing and speaking to the patient and making a date for their operation. He has never had a waiting list.
He said: "I see this as being efficient and also kind to my patients. Once you allow a waiting list to develop, you are in trouble.
The consultant said he was told by Graham Wallis, the trust's chief executive, that it was only able to fund patients who were classed as clinically urgent and could not fund activity where patients were brought in ahead of time.
Let me cordially remind everyone, that funding in the NHS is currently running at about 2.3 times what it was in 1997, to a grand total somewhere in the region of £75 billion. The NHS trusts however, have managed to rack up a deficit of nearly £1 billion.
Think-tank Reform said the NHS should become more market driven in a bid for efficiency if a £6.8bn deficit was not to be accrued over the next five years.
But the centre right group called for an end to major hospital building schemes with the NHS already facing a £620m debt this year.
But the poor old staff are only supposed to be allowed a 2% pay rise this year, the poor little woozums. And has productivity increased? Well, it's difficult to know, since many hospitals refuse to provide the requisite information.
Where have all the pou-ounds gone?
Gone down the pisser, every one...