Invermay's only health centre, Caledonian Medical, will close on April 18, with two of its three GPs leaving to establish their own practice.
Dr Tim Shaw and Dr Leanne Jones will join Windmill Hill Medical Centre, a new practice which is expected to open soon in Launceston.
Caledonian's third GP, Dr Richard Pearson, will join the Kings Meadows Medical Centre on Hobart Road.
Dan Lowe, the general manager of TasPrac Services - which owns both the Invermay and Kings Meadows practices - said it had been trying to recruit more GPs for the past four years.
"With two GPs going... it is just not viable to keep that practice [Caledonian] operating," he said.
"It is challenging to recruit GPs.
"We have been trying to recruit GPs for a long time.
"We have had some success, but unfortunately the GPs we have been able to recruit in that time period, have had to move on for various reasons.
"So we have had to make the tough decision to close the practice."
Located on Invermay Road, the Caledonian Medical Centre has been at its current location for the past 12 years.
Along with three GPs, the centre also employs three receptionists, three nurses, one exercise physiologist and once practice manager.
Mr Lowe said most of the staff had been successful in gaining new employment, with some to be redeployed within TasPrac Services.
He said the centre began notifying patients of the closure "some weeks ago", with remaining patients to be sent letters in the coming days.
"I guess the most important thing to convey is the fact that patients under the care of doctors at Caledonian, will still remain under their care - albeit just from a different location," he said.
"It is not a matter of us taking GPs out of the market, it is simply a move to another couple of centres.
"But the patients won't be disadvantaged, which is important to us."
Located on the corner of High and Clarence streets in Launceston, Windmill Hill Medical Centre will be managed by Dr Shaw and is expected to open in the next few weeks.
Mr Lowe said TasPrac was fully supportive of both Dr Shaw and Dr Jones' move.
"We're looking at it from a patient care standpoint," he said.
"We are happy that new patients can continue to have or receive care from their GPs."