Tony Ryall

Wellington Feb 22, NZPA - The Government has approved the Otago and Southland District Health Boards'(DHBs) plans to merge.

Health Minister Tony Ryall said the Southland and Otago DHBs had been working closely for several years, and the merger made sense.

"There's already a joint regional management team, a joint chief executive, and two shared board members, including the deputy chair," Mr Ryall said.

"The Southern DHB is expected be formed on 30 April, and the current members of both boards will work as a single board, under one chair, until the local elections at the end of this year."

Cabinet considered the issue today.

Mr Ryall said the main concerns expressed by people who made submissions in the consultation were the potential loss of services from Southland Hospital and a loss of representation for Southland.

Medical staff in Southland opposed the move as they were concerned about what it would mean for Invercargill hospital and there was insufficient consultation.

Mr Ryall said the new Southern DHB Board would have a clinical advisory committee, to give a "strong voice for clinicians" in planning new services.

"The Government has accepted the recommendation of the two boards to establish two wards. After the DHB elections, there will be four elected representatives from Otago and three from the Southland region as well as four ministerial appointments," Mr Ryall said.

"This merger is, in itself, not a panacea to the DHBs' service and financial challenges. But this local initiative is a good step in securing the future of southern health services."