Wodonga's private hospital will be sold and its services transferred to Albury.
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Ramsay Health Care, which manages Murray Valley Private Hospital on Nordsvan Drive, Albury-Wodonga Private Hospital and Border Cancer Hospital, confirmed the Wodonga site will go on the market.
Chief executive Sheryl Keir said a new rehabilitation ward would be built as part of Albury's private hospital on Pemberton Street.
Plans are with Albury Council, but Ms Keir did not expect to the facility to be ready for at least 18 months.
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"We want to combine all services into one spot because we can't really expand here (in Wodonga)," she said.
Murray Valley Private Hospital will continue to operate until its rehabilitation services can be accommodated across the border.
Ms Keir said she was unaware how the NSW and Victorian government's $558 million investment into a redeveloped Albury hospital announced on Thursday would impact its collaboration with Albury Wodonga Health.
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