Cornwall's two hospices have formally joined together as a single charity.
Mount Edgcumbe Hospice at St Austell and St Julia's at Hayle have worked together and shared staff for a number of years.
A single charity called Cornwall Hospice Care will take over the running of the hospices and fund raising.
It costs £4m a year to run the hospices and only 20% of that comes from the government. The rest is provided by a team of fund raisers.
The new charity, which is on course for a £1m overspend within a few years, plans new fund-raising initiatives, including its own lottery.
It also wants to expand services by looking after patients with other terminal illnesses and providing care in the home.