THE launch of the new 'streamlined' NHS North West on July 1 marks the next step in reform of the service.

The new HQ for the NHS in the region brings together the current Cheshire and Merseyside, Cumbria and Lancashire and Greater Manchester strategic health authorities and will be responsible for driving health reforms.

The new organisation will be based at Gateway House in Manchester, but is also likely to have staff based in other parts of the region.

It will have three main functions - strategic leadership, developing organisations and the workforce, and ensuring local health systems operate effectively and deliver improved performance.

Mike Farrar, who will lead the new organisation as chief executive, said: 'Improving services for patients and achieving financial balance are two sides of the same coin. We achieve both by planning services around patients and not buildings.'

In many respects, the SHAs new role is an extension of its previous one. The big change is the way in which it will work.

Sir David Henshaw, who has been appointed as the chair of the organisation, said: 'The Department of Health has set a clear vision for the future - strong PCTs, patient-led commissioning, an increasingly diverse range of public and independent healthcare providers, and foundation trusts.

'Rather than take a top down approach, our task is to provide strategic leadership within their regions.

'Patients are best served by clinicians, patients and managers working together to meet their needs. Ensuring clinicians and patients are fully involved in NHS reform will be a key role for NHS North West.

'This is a complex leadership role requiring relationships based on trust, mutual understanding and shared agendas.'

The new body says an immediate priority will be restoring financial balance in the regional NHS by the end of 2007/8.