GOVERNMENT backing for the Darzi Plan means some people will lose their district general hospital, it was claimed last night.

Health bosses in County Durham are pleased Health Minister Jacqui Smith has backed the merger and has given an extra £3.5m to make the plan work.

The plan was drawn up in February by Professor Ara Darzi because the new £97m University Hospital of North Durham was built with too few beds, and there were fears for the long-term viability of the new Bishop Auckland General Hospital.

County Durham health officials argue that if the three major Durham hospitals work more closely together, patients will benefit from speedier treatment.

But Valerie Bryden, chief officer of South Durham and Wear Valley Community Health Council (CHC), said: "In essence, this means the population of Sedgefield, Wear Valley and the lower parts of Teesdale will have lost their district general hospital."

Mrs Bryden said the CHC did not accept the proposed changes were in the best interests of people across South West Durham.

The Darzi Plan would make Bishop Auckland "merely an overflow facility", she said.

While the plan will see the construction at Bishop Auckland of one of the UK's first "hip factories" - a diagnostic and treatment centre where there is no risk of planned surgery being cancelled by emergency admissions - the downside is that the town's hospital will be stripped of emergency paediatric, gynaecological and obstetric services. And, despite a 10,000 signature petition, Bishop Auckland will also lose its special care baby unit.

David Woodhead, chief officer of North Durham CHC, said: "It looks easy on paper but its a mammoth task to get this on the road."

North Durham MP Kevan Jones went further, calling for an investigation into what he described as the planning "cock-up" which led to the problems.

But Derek Foster, MP for Bishop Auckland, said the move would "secure the long-term future" of all three major hospitals.

Ken Jarrold, chief executive of County Durham and Tees Valley Health Authority, said the proposals "will provide the foundation to build the best possible general acute hospital services in County Durham and Darlington."

The NHS Appointments Commission has announced that North Durham trust chairwoman Angela Ballatti will chair County Durham and Darlington Acute Hospitals NHS Trust.