Fernbrae Hospital in Dundee is to close in May with the loss of 50 jobs.
Staff at the private hospital on Perth Road were told on Tuesday afternoon that BMI Healthcare had decided to close the 15-bed facility.
BMI Healthcare said the decision was a result of falling numbers of patients with private health insurance, or privately-funded care, in the hospital’s catchment area.
One employee said: “We are all in shock.
“We thought it would be a job for life here although there have been some signs: people that have left have not been replaced.”
The hospital employs 25 clinical staff and 25 non-clinical employees.
The BMI Healthcare spokeswoman added the hospital would try to complete as many scheduled operations as possible before it shuts its doors.
Patients awaiting their first consultation appointment will be contacted to discuss the transfer of their care elsewhere.
She said: “Our focus now, as it has always been, is on the delivery of safe healthcare. We need to make sure that we look after our patients and equally support our staff as they consider their own next moves.
“The measures we are putting in place for each patient will ensure safe continuity of care.
“We will be contacting all patients in order of appointment to arrange the next steps in consultation with their consultants;.
“If any patient have an urgent query they could leave their name with our patient contact number 0800 096 2254 and the hospital will contact them.”
Health care has been provided on the Fernbrae site for 75 years.
The hospital has one theatre, a treatment room, seven consulting rooms and 15 rooms for patients.
Earlier this month BMI announced it is to close The Somerfield Hospital in Maidstone, Kent with the loss of 62 jobs.