THE chief executive of Basildon Hospital has taken charge of a second NHS trust amid ongoing speculation of a merger.

Clare Panniker, who has led the Basildon trust since 2012, will take up a joint role which will also see her become chief executive of the Mid Essex Hospital Trust, which includes Broomfield Hospital, in Chelmsford.

She is already leading a joint committee exploring how the Basildon, Southend and Mid-Essex trusts can work closer together to save money, which could see the three hospitals merge together.

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 it was announced by NHS England that the three trusts would be the subject of one of the country's first "success regimes" to drive improvement in care and finances.

The trusts 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 work together by specialising services and sharing staff 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, but the drive to improve care 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 trusts' sites.

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 hospitals, which were been deemed "clinically and financially unsustainable", will form a long-term partnership with nearby Ipswich Hospital, it was announced on Thursday.