Powys teaching local health board is set to merge with Powys county council in the latest example of pioneering joint leadership arrangements.
A report commissioned by the two bodies said they had made progress in their co-operation but needed to go further if they were to improve efficiency and services.
The report recommends a full merger and is likely to be voted on by councillors in September.
Chris Mann, chairman of the health board, welcomed the report’s recommendations.
“It marks the start of what could be very exciting developments that could put Powys at the forefront of improving public services in Wales,” he said.
Council leader Michael Jones (Ind) said: “While we already work closely with the local health board in a number of ways, we know we can do even more.
“This report is significant and could lead to radical and innovative changes in the way public services in Powys are organised. Most importantly, it could lead to further improvements in the services we provide to the people of Powys”
Powys’s English neighbour Herefordshire council merged its operational structure with Herefordshire PCT last year. They share a single management team and chief executive.