The Government has approved the Otago and Southland District Health Boards' plans to merge.

Health Minister Tony Ryall said, "The Southland and Otago DHBs have been working closely for several years, and this merger makes sense. There's already a joint regional management team, a joint Chief Executive, and two shared board members including the deputy chair."

"The Southern DHB is expected be formed on 30 April, and the current members of both boards will work as a single board, under one chair, until the local elections at the end of this year."

The main concerns expressed by people who made submissions in the consultation were the potential loss of services from Southland Hospital and a loss of representation for Southland.

"The new Southern DHB Board will have a clinical advisory committee, ensuring a strong voice for clinicians in planning new services, as well as providing a direct line to the DHB's governors."

"The Government has accepted the recommendation of the two boards to establish two wards. After the DHB elections, there will be four elected representatives from Otago and three from the Southland region as well as four Ministerial appointments.

"This merger is, in itself, not a panacea to the DHBs' service and financial challenges. But this local initiative is a good step in securing the future of southern health services."