The Government has approved the merger of the Otago and Southland district health boards, the first in the country to formally join forces.
Health Minister Tony Ryall made the announcement on Monday, saying the DHBs have been working closely for years and it makes sense for them to merge.
The Southern District Health Board will be formed on 30 April with the current members of both boards working as a single DHB under one chair until local elections in October this year.
Mr Ryall says the DHB will have two wards, with four elected representatives from Otago and three from Southland. It will also have a clinical advisory committee, ensuring a strong voice for clinicians in planning new services.
However, the minister says the merger will not solve all the current DHBs' problems, as it will have a debt of $20 million - second only to Capital and Coast DHB in Wellington.
Mr Ryall says administrative jobs will be cut as a result of the merger.
The new Southern DHB is expected to be formed on 30 April.
The Government says it won't force any of the other boards working closely together to amalgamate against their wishes.
Boards co-operating closely include Canterbury and West Coast; Wellington's Capital and Coast, Hutt Valley and Wairarapa; and Whanganui and MidCentral in Palmerston North.
