Campaigners said more than 200 people supported the event on Saturday against the closure of Goscote Hospital and the merger with a Wolverhampton trust.

Health chiefs plan to create new intermediate care beds in nursing homes to take some of the Goscote patients, and to stop taking acute care patients.

People are to be consulted on the merger of the trusts later this year.

Petition signed

But the campaign group, called Say No to the Merger and No to the Closure of Goscote Hospital, fears the changes could lead to health services being moved to Wolverhampton.

Spokesman Pete Smith said: "We are concerned that our main hospital, particularly if we lose the secondary one at Goscote, could be downgraded to cottage hospital status.

"We have nearly a quarter of a million people in the borough and we want local hospital services and we want them to remain in Walsall."

'Changes essential'

He was joined at the event by Walsall North MP David Winnick and Kidderminster's Health Concern agent, Malcolm Cooper.

More than 15,000 people have already signed a petition against the proposals according to Mr Smith, and he urged those at the rally to send letters to their MP and letters to the Walsall Primary Care Trust.

Paul Jennings, chief executive of Walsall Teaching Primary Care Trust said: "As the NHS in Walsall, we are proposing to commission new intermediate care beds and associated services, for patients who are fit to be discharged from hospital but not yet ready to go home. These will be in nursing and residential homes in Walsall.

"We are also proposing to cease transferring patients from the Manor Hospital to Goscote. By doing this we will ensure that all patients receive the very best specialist care the NHS has to offer.

"I believe that both of these changes are essential if we are to provide the right care for Walsall people."