Ravenscourt Park Hospital is to close in the autumn.
The "tough" decision to shut the NHS facility, which specialises in orthopaedic services, was taken by Hammersmith Hospitals NHS Trust (HHNT) for financial reasons, a statement from the trust said.
The HHNT said the hospital had only been operating at around 50 per cent of its capacity since opening in 2002.
Services previously offered at Ravenscourt Park will mainly be transferred to the nearby Charing Cross Hospital. A final date for the transfer has not yet been set.
The trust added that, wherever possible, Ravenscourt Park staff would be transferred to other local hospitals.
No plans have been made with regards to the future use of the hospital building.
In 2002, Ravenscourt Park was set up as an NHS specialist treatment centre to help reduce orthopaedic waiting times.
Derek Smith, chief executive of Hammersmith Hospitals NHS Trust, said: "There will be no loss of services and patients will also be able to choose to be treated for straight forward procedures at other west London hospitals near to where they live."
A spokesman for HHNT said: "The trust is now looking at what the future plans for the hospital should be. This decision has been taken to help the trust's finances."
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