More than 120 NHS Borders employees will be relocated from the Newstead headquarters to the Borders General Hospital complex and offices in Melrose by the end of March in a bid to save cash.
Some staff will work from the main hospital building itself as well as the education centre, which is next to the short stay car park.
Employees will also be moved to the Westgrove offices on Waverley Road, Melrose.
An NHS Borders spokeswoman told us: “The Newstead site, which currently hosts a head count of 124 employees including the board executive team and a range of NHS Borders support services will close by the end of March 2014.
“NHS Borders must achieve savings of £4.8million by the end of the current financial year.
“The closure of the Newstead site will reduce our property, energy and maintenance costs in addition to releasing a capital resource for investment in healthcare services.”
The Newstead site will be put up for sale on the open market following the relocation of staff. At a public meeting held in Darnick last month to discuss parking issues following the introduction of parking restrictions at the BGH, concerns were raised about the implications of the move.
The Provost of Melrose, Willie Windram, said more staff working at the Westgrove offices could cause parking issues at the Melrose end of High Cross Avenue and in Tweedmount Road.
He added: “I hope extra consideration is given to where these people will be able to park.”