 However, with the publication of the ""Reconfiguring the Department of Health's arm's length bodies"" report in July 2004, it was decided to reduce the number and size of the Special Health Authorities in order to bring about efficiency savings.On 30 September 2004, the then Secretary of State for Health, John Reid, announced that the NHSU would be merged with the NHS Modernisation Agency to form the new NHS Institute for Learning, Skills and Innovation, now NHS Institute For Innovation and Improvement.This merging would allow the cutting of staff from 1,500 to 300 people.