Otago and Southland District Health Boards are considering a merger in an unprecedented move which could be made as early as next year.
The boards say a single board would save money and help maintain health services in the South, but there are concerns from some that Southland could lose out in the merger.
Southland DHB chair Paul Menzies says its a struggle to make the finite health dollars go round and having a single board for the region would save about $500,000.
Both boards already share some functions, including the executive management team, human resources, procurement and IT.
Joint chief executive Brian Rousseau says having a single DHB would also stabilise some hospital services which are currently seen as marginal.
Cancer and blood services for the two regions were combined in late 2007, which Otago DHB chair Errol Millar says has been a success.
Consultation to gauge public support for the project will begin in November. The boards will decide before March next year whether to ask Health Minister Tony Ryall to combine them.
Mr Ryall has issued a statement saying the DHBs are working more closely together than any other in the country.
However, he says the Government is not asking for the merger and its up to the people of Otago and Southland to decide.
