RADICAL changes are in the pipeline to meet tough, new Government targets, health chiefs warned this week.

Halton NHS Primary Care Trust (PCT) could merge with St Helens PCT or team up with Halton Council to cut management and administration costs by 15 per cent and deliver a more efficient, patient-led service.

"We are looking for partnership," Halton's new chief executive Laura McMurtrie announced at the PCT's annual meeting at Halton Stadium on Monday.

"Halton has a very similar population and demographics to St Helens.

At the moment, Warrington PCT is not looking to go with us. They are trying to stand alone."

The trust's close partnership with Halton Council, she said, could be developed.

"We are in discussions with key stakeholders about a range of options. GPs have to become far more involved."

Halton PCT has an annual budget of £165m and employs 900 staff.

They are now striving to meet new 'contestability' regulations, to commission the best value patient led services.

Proposals to merge will be rigorously tested before the strategic health authority announces its preferred option for Cheshire and Merseyside next month.

The Department of Health is expected to ratify the final choice by the end of the year, leaving 90 days' consultation before the new trusts come into effect in April 2006.

The shake up is part of the Government's bid to improve the NHS by 2010.