Severe osteoarthritis, especially at the level you describe, can cause problems far from the area.
The C7 nerve root affects the hand and fingers. One symptom of irritation of this nerve is altered sensation of the fingers (especially the middle finger).
Heat over the neck should help with the pain. You may also try ice to decrease inflammation. Other options include traction or possibly corticosteroid injections into the nerve root. Good luck
Antonio Marotta, D.C.