LYNGFORD House conference centre, in Taunton, could be sold off and the proceeds ploughed back into the NHS.
NHS Property Services has decided to close the imposing premises off Selworthy Road, which it has owned since April last year as part of national health reforms.
A spokeswoman said Lyngford House is unusual in the NHS portfolio as it is a conference centre with accommodation and not used for health care.
She added: “It is fundamental that NHS properties are used for the benefit of patients and not run at a loss to the taxpayer.
“Following a review of this property and its associated functions, and in consultation with local stakeholders, a decision has been taken to close the premises.
“We are currently consulting with staff on the plan for Lyngford’s closure and looking at options for the future of the site.
“That may include its sale, in which case all proceeds would be returned to the NHS.
“We will continue to work closely with staff and NHS partners on ensuring the best possible outcome for these premises and the local health community.”
Between April 2013 and last month, NHS Property Services completed the sale of 109 surplus properties, generating £52million for the public purse and saving £6million in running costs.
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