Both hospitals have been facing budget deficits

A public meeting was held on Thursday to discuss whether Nottingham City Hospital and the Queen's Medical Centre would save cash by merging.

The next stage will be a three-month public consultation which will start in early September to ask staff, patients and the public for their views.

Union bosses have already indicated they are concerned over a possible loss of beds and administrative staff.

Large deficits

The status of the hospitals has been the subject of a major review by external management consultants.

It is thought the merger would save tens of millions of pounds by removing some duplication of services but it is unlikely the hospitals would combine on one site.

Bosses have already told the two hospital trusts that because of large deficits and an expected fall in patient numbers, the status quo is not an option.