Drumcarrow Lodge at Stratheden Hospital is set to close as part of a reorganisation of acute old age in-patient services in central and east Fife.
The ward, which is made up of two small connected houses, has been described by NHS Fife as no longer meeting desired standards for in-patient mental health care.
A recent report highlighted maintenance problems with the building, particularly relating to damp.
It went on to recommend that future acute old age inpatients services be delivered from one ward rather than the two currently being used.
A review of the service showed that average occupancy across both wards during the past year has been consistently below 24 patients per day.
Drumcarrow Lodge on its own has had an average occupancy over the past six months of less than five patients per day.
The health board believe there is nothing to indicate any future change to patient numbers or that the closure will impact on the ability to admit patients when required.
“A significant reason for reducing occupancy has been the incremental development of community early assessment and treatment teams in central and east Fife,” the report says.
“The two teams have enabled more people (especially those with dementia) to be quickly and properly assessed and treated in their own homes without the need for admission to hospital.
“The presence of the community teams has also enabled shorter stays in hospital and earlier discharge back to the community.”
The report goes on to say that the plan was tested for six weeks over the winter during severe weather conditions.
No negative impacts were noted when the wards were merged to reduce staffing pressures and move patients from the poorer environment at Drumcarrow.