HEALTH chiefs in Blackburn and Burnley formally applied to merge their trusts today despite fears over the future of staff.

Management at Blackburn, Hyndburn and Ribble Valley NHS Trust and Burnley Health Care Trust believe the move will be good for everyone by bringing services and administration under one roof.

But union bosses have warned there is uncertainty for staff, as they are also awaiting news on how private finance schemes at their hospitals will effect them.

And MPs warned they would be keeping a close eye on the situation, although backed the scheme in principle.

The health trusts agreed at simultaneous meetings to ask Health Secretary Alan Milburn to approve the merger, which could see them join forces by April 2003, after consultation.

The proposal, which both trusts have been considering for two years, will mean a change in the organisation and management of hospital services in East Lancashire.

The trusts already work closely together on some services, such as ear nose and throat and ophthalmology.

Blackburn's Queen's Park Hospital and Royal Infirmary are due to merge under an £80million privately funded (PFI) scheme, while Burnley General Hospital is awaiting news of its own smaller £16million scheme to rebuild part of the site.

It means staff face double uncertainty, and must wait for news of the merger and the PFI schemes before they know their future, according to a staff representative.

John Thomas, chief executive of the Blackburn trust, said: "The trust board did approve submitting an expression of interest in merging the two acute trusts and we can now move onto the next stage to request approval from the Secretary of State.

"We believe that even more could be achieved by merging the two organisations, which would improve services to patients."

Brian Foster, chairman of the Burnley Health Care Trust, said: "I am confident that the proposed merger will improve service to patients, increase career opportunities for staff and make the best and most effective use of financial resources."

But Dill Eccleston, chair of health workers' staff council Blackburn Staffside said: "It has been a cause of concern for staff, because they don't know what is going to happen.

"Until it has been all sorted out, it is a worry for us. I cannot speak highly enough of the staff, their resolve to carry on and do what they do best, despite this worry. Blackburn staff also have the worry of the move to a single site at the same time.

"It could be good for recruitment though, because we can recruit for both sites."

Ray Stackhouse, chair of the Burnley Staffside, added: "Everything is up in the air at the moment. As far as the merger goes, nothing should change for us as I understand it, but we don't know what will happen with the PFI. We're just waiting to hear."

The Blackburn and Burnley branches of Staffside will hold a joint meeting on staff concerns in three weeks' time.

Nigel Robinson, chief officer of the Blackburn, Hyndburn and Ribble Valley Community Health Council, warned that it could mean some patients had to travel further.

He said: "Hopefully it will help with improved care for patients, but the inconvenience for patients will be that certain things will be just on the Blackburn or Burnley site.

"I think it will be only small numbers that will be affected, but we must look at how that develops. This does not mean job losses, it just means visiting may be a difficulty.

"The financial aspects are good though, as savings on management should be passed onto patient care."

Chief officer of the Burnley CHC, Helen Gee, said it was supporting the merger.

"In principle we can see good reasons for merging management and so on - that is the way the NHS is going," she said. "Obviously, we'll make our views known at public consultation, but we don't have any objection to it in principle."

The trusts will now jointly prepare an "expression of interest" to dissolve both trusts and move on to formal consultation.

Blackburn MP Jack Straw said today: "My view is that this would be a sensible merger because there has already been a concentration of some specialities in East Lancashire at either Burnley General or the Blackburn hospitals.

"I will listen to what people have to say but I think this could be of benefit. It could save money and improve services."

Burnley MP Peter Pike said: "I am not against it. If it means money is spent on patient treatment rather than new levels of management that would be the major improvement.

"I have asked the trust to see the result of continued public consultation.

"I want to see certain services continuing to be provided at Burnley General, notably accident and emergency and intensive care.

"I am also concerned about management jobs because there are job opportunities here and I want to see some of these job opportunities in Burnley rather than at the other end of East Lancashire. I will be watching the development of the proposals anxiously."

Hyndburn MP Greg Pope, said: "This is a good idea. It will give us the best of both worlds.

" I am meeting John Thomas, chief executive of the Blackburn trust, which covers most of my constituency. I look forward to discussing these constructive proposals and congratulating his trust on getting three stars in the performance ratings, and Burnley on achieving two."