STRUCTURE: Two sets of NHS trusts at different ends of the country are considering merging in response to the threat of falling income and the need to achieve foundation status.

The deputy chief executive of a Yorkshire foundation trust has taken over the running of another nearby hospital trust, as the organisations develop plans for merger.

York Teaching Hospital Foundation Trust said its deputy chief executive Mike Proctor would also become acting chief of Scarborough and North East Yorkshire Healthcare Trust, as “discussions continue around integrating the trusts into a single organisation”.

Previous Scarborough chief executive Richard Sunley joined Hull and East Yorkshire Hospitals Trust as director of service transformation.

York chief executive Patrick Crowley said: “This is a significant step towards becoming one organisation, and will enable us to continue with our collaborative efforts to shape services in North and East Yorkshire.”

Although the trusts are currently in surplus, the local health economy has struggled to finish in financial balance in recent years.

An independent review is underway, commissioned by the strategic health authority NHS Yorkshire and the Humber, into why NHS North Yorkshire and York consistently overspends.

The boards of Dartford and Gravesham Trust and Medway Foundation Trust also announced last week they were “exploring” the option of a merger.

A press statement said: “The proposed changes to the NHS in the Health and Social Care Bill, as well as the increasing financial pressures, mean we will be faced with some significant challenges over the coming years.

“In this context the boards have not only been considering how we can ensure long term clinical and financial sustainability, but also how we can improve the services we offer to local people.”.