CASH-strapped Winchester health bosses are pushing ahead with a management merger to cut costs and improve services.

The Winchester and Eastleigh Healthcare NHS Trust is currently looking at a projected shortfall of around £5m.

As reported by the Daily Echo last month, the trust, which runs the Royal Hampshire County Hospital, is planning to have closer ties with the Mid Hampshire Primary Care Trust under one chief executive.

Rod Halls, the chief executive of the Winchester and Eastleigh Trust, has taken early retirement and Kay Riley, director of nursing, is currently acting as chief executive.

An interim chief executive will be appointed for up to nine months and an advertisement for the post will go out in the new year.

The merger will also include a single surgery delivery system, led by underfire Southampton health chief Mark Hackett.

Winchester health bosses had said they were worried this would mean all surgery would be managed through Southampton.

Barbara North, chairman of the trust board, said an agreement had been made to ensure this did not happen.

The board has now formally approved plans for the new Mid Hampshire Partnership and the next steps will be taken in the new year.

"There are a couple of small issues that need to be resolved, and we are expecting them to be resolved in the early new year," Mrs North said.

More details about the merger will be discussed at the next board meeting in January.