MENTAL health services in Wyre Forest will undergo a dramatic overhaul which will see Lucy Baldwin Hospital in Stourport saved from the axe.

The hospital, which serves adults with mental illnesses, is to be completely transformed to provide more overnight beds, a day hospital and community support services.

It will be allied to privately-funded residential care units and flats. The scheme depends on mental health chiefs winning support from residents, users and health workers.

The hospital was built in the 1920s at Lickhill as a gift to Lucy Baldwin, wife of the town's most famous son, Prime Minister Stanley Baldwin. Sue Hunt, chief executive of Worcestershire Mental Health Partnership NHS Trust at Lucy Baldwin Hospital, Stourport.

Her radio plea for a maternity hospital for the town was picked up by Sir Julien Cahn who provided the cash to have it built. It later became a cottage hospital.

It was earmarked for closure in 1998 as part of the "Investing in Excellence" review of health services in the county, which also resulted in the downgrading of Kidderminster Hospital.

But now new proposals from Worcestershire Mental Health Partnership NHS Trust have been drawn up which will see a dramatic expansion of services instead of closure. The project will involve shutting the existing 18 beds for people over-65 and six adult rehabilitation beds for up to 18 months.

But trust chief executive Sue Hunt is confident the end result will be worth the upheaval.

"I am delighted the uncertainty over Lucy Baldwin Hospital for the last three years has been resolved and I am looking forward to the planning of modern patient-focussed care where staff can continue to deliver high-quality services," she said.

"This is a really exciting opportunity. The services provided from the Lucy Baldwin site are highly regarded, valued and needed."

But the buildings and facilities are outdated and do not meet new NHS standards.

However, there is currently little alternative accommodation available for people with mental illnesses, particularly in North Worcestershire, meaning more people stay in acute hospitals for longer than is needed or desired.

"The Lucy Baldwin site is very well placed to be developed to provide a wide range of accommodation that will meet the various needs of older people with mental illnesses," she added.

The plans include creating modern, purpose-built units for inpatient and outpatient care, day care services and community team support, allied to privately supported independent living units and residential care in modern, purpose-built accommodation.

"The involvement of local people, service users and professional staff is fundamental to the development of the plan."

A project team is being set up to drive forward the vision and full consultation will take place, she added.

New care plans will be drawn up for existing residents while work is carried out, with some likely to go to similar units in the county or nursing homes. Residents and relatives will be kept closely informed.

Staff were told the news at a meeting yesterday morning. The idea has already won the backing of district MP Dr Richard Taylor.

He said: "All of us who have recognised the value of the Lucy Baldwin site for health purposes and have been working for its retention will be delighted with this news.

"Common sense prevails in the trust now it has lost the shackles of the defunct health authority and is really able to plan the local services we need."