A SHAKE-up of health services, which would provide extra beds for elderly mentally ill patients in the Wear Valley and Sedgefield districts, has moved a step closer.

The National Health Service's regional office has approved an outline business case for centralising facilities in a new mental health unit in the present maternity wing of Bishop Auckland General Hospital. That would provide six more assessment and treatment beds and 20 extra day hospital places for the two districts.

The 26-year-old maternity unit will be treated to a £6.5m transformation after services move into Bishop Auckland's £66m new hospital. An extra annual investment of £1.1m will meet ongoing operating costs.

County Durham and Darlington Priority Services NHS Trust provides facilities at the Lady Eden Unit, at Bishop Auckland, the Josephine Rutter Centre, in Sedgefield Community Hospital, and Homelands Hospital, near Crook.

The Josephine Rutter centre has not been allocated space in the new Sedgefield Community Hospital, Lady Eden, which recently underwent a £388,000 facelift, is still being used for health care while Homeland's future is under review.

Dr Maria Templeton, consultant psychiatrist, said: "The new facility, which includes single en-suite rooms, will enable us to provide a more therapeutic approach to care."

Lesley Crawford, general manager for mental health services for older people, said: "This is another exciting development in services for older people. It will enable us to deliver high quality services which will meet the needs of users of the service and carers for years to come.

"The staff from the service have contributed fully to the plans so far, and are looking forward to helping to ensure delivery of this new facility for the people of Wear Valley and Sedgefield District."

Chief executive Sandy Taylor said: "This is another important step forward for older people's services. I would like to say thank you to all those involved in producing the outline business case and look forward to the opening of this new facility in autumn 2003.