HEALTH bosses at Lancaster Priority Services Trust have announced plans to merge with South Cumbria Community and Mental Health Trust.
The move was prompted after increasing financial strain on health services across Morecambe Bay and the need to reduce overhead costs.
David Jordison, chief executive of the Lancaster trust allayed fears that patient services would suffer but conceded there would be job losses - the majority of which would be in management.
Lancaster Priority Trust provides mental health services, help for people with learning disabilities and other clinical services such as dieticians and occupational therapists.
Mr Jordison said: "We're hoping to keep job losses to a minimum and protect clinical services. We will be trying to find work for displaced management elsewhere.
The two Trusts have already pooled services for patients with brain damage and resources for child psychiatry services.
"For the past six to nine months we have been collaborating rather than competing and this has already led to some benefits which we would hope could be applied elsewhere," added Mr Jordison.
The proposals will have to go before the health Secretary of State, Frank Dobson, and if approved the two trusts will go out to full consultation some time in the Autumn.
There are a total of five trusts in the Morecambe Bay area catering for about 320,000 people. Health chiefs say that similar sized catchment areas elsewhere in the country have as few as two or three trusts.
When the two trusts were initially formed Lancaster and South Cumbria were regarded as different regions.
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