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NHS Borders has submitted plans for a new medical centre at the former ambulance depot in Galashiels.
NHS Borders is to relocate 120 staff from Newstead to the Borders General Hospital site and to a separate office in Melrose by March.
NHS Borders is to invest £7m in the development of three new health centres in Galashiels, Jedburgh and Lauder by 2012.
NHS Borders has submitted plans to the Scottish Executive for the £4m upgrade of three local cottage hospitals at Duns, Peebles and Kelso.