BASILDON Hospital's chief executive has taken charge of a second NHS trust amid ongoing speculation of a merger.

Clare Panniker, who has been in charge at Basildon since 2012, will take on a new joint role which will also see become chief executive of the Mid Essex Hospital Trust, which includes Broomfield Hospital, in Chelmsford.

She is already heading up a committee exploring how Basildon, Southend and Mid-Essex hospitals can work closer together to save money, which could result in a merger.

Mrs Panniker said: "I am delighted to be given this opportunity to lead the Mid-Essex trust.

"This is an opportunity to develop a clear vision and direction for acute healthcare services across both trusts, identifying opportunities for collaboration where appropriate with the aim of improving the care we deliver for our patients.”

Last year NHS England announced the launch of the success regime, designed to drive improvement in care and finances at the three trusts.

The hospitals were selected because they have "deep-rooted systemic issues that lead to high demands on services, rising financial deficits and challenges for clinical care quality."

At a Success Regime conference earlier this month, it was warned the hospitals could rack up a combined £200million in debt between now and 2019 unless changes are made to the way services are delivered.

The joint committee, led by Mrs Panniker, will examine how the hospitals can sharing staff and services to cut costs.

Under Mrs Panniker's leadership, Basildon Hospital has gone from being in special measures to being rated good by the Care Quality Commission, although the improvement drive has seen the trust accumulate significant debt.

The hospital is expected to record losses of £31.8million in the current financial year - despite receiving a £38.9million Government bailout to cover its running costs.

Mrs Panniker will work at Mid-Essex for an initial 12-month period, splitting her time equally across the hospitals.

Basildon Hospital appointed a new interim managing director, Steve McManus, last month, in anticipation of Mrs Panniker's new part-time role at the trust.

A full merger of the three hospital trusts has not yet been explored, but the precedent for such a move was set this week by another Essex hospital.

Colchester Hospital, which has been deemed "clinically and financially unsustainable", will merge with nearby Ipswich Hospital, it was confirmed on Wednesday.