WORCESTERSHIRE Health Authority is to be swallowed in a new "super authority" which also covers Coventry, Warwickshire and Herefordshire.
Ministers have decided to press ahead with controversial plans to merge the four health authority areas next year.
The new body will be named Coventry, Warwickshire, Herefordshire and Worcestershire Strategic Health Authority.
The move reflects the stripping of responsibilities from health authorities in recent years.
Responsibility for distributing cash to GP surgeries, hospitals and other local services has shifted towards primary care trusts (PCTs).
By 2004, the PCTs will be responsible for allocating 75 per cent of the NHS budget, compared to just 15 per cent handled by GP fundholders in 1997.
The department of health believes the shift will save slash NHS bureaucracy - just as power has been devolved to schools from local education authorities.
However, it is not yet known where the new health authority will be based - or if jobs will be axed.
Nationally, 28 giant health authorities will replace the existing 99.
"Increased power and responsibility will rest with people working on the frontline," said Health Minister John Hutton
"We've consulted extensively with patients, the public and those working in the NHS on the boundaries of the new strategic health authorities.
"Our announcement represents a significant step towards realising a less centrally- managed NHS, but within clear national standards."
The Government will press ahead with appointing new chairmen and chief executives of the new authorities this week.
They will be come into force in April, although the legislation to set them up will not pass through Parliament until October.
The shake-up will save around £100m, but also involves the scrapping of the 10 regional NHS offices, with the loss of around 500 jobs.
Health bodies across the two counties have grudgingly accepted the plans, but many believed it would be more appropriate to include Shropshire rather than Coventry.
Members of the Hereford &Worcester Ambulance Service NHS Trust were prepared for the announcement.
"The news is unsurprising, although there were rumours to the contrary," said Linda Millinchamp, chief executive of the board.
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