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The plug has been pulled on a state-of-the-art health hub that would have taken on 6,000 new patients.
The NHS said it will no longer support the plans for the Bell Road Medical Centre in Sittingbourne town centre.
It was set to be taken over by Chestnuts Surgery which is located in East Street.
It is understood the centre would have accommodated 17,000 patients – up from the 11,000 patients the GP currently has on its books.
But NHS Kent and Medway confirmed it and the GP will “pursue other opportunities for expansion”.
It said this decision came after a “further proposal” from the developers, the Aria Group.
It is understood the updated plans included a reduction in space and a change to the layout.
KentOnline reported in April that the NHS had stalled its decision surrounding the plans due to the cost of the expected rent which is understood to remain a contributing factor.
However, the Aria Group say the reductions in space and layout were to bring down the cost of the development to accommodate the NHS.
One of its directors, Kain Kassam, told KentOnline the decision was "undeniably disappointing” after spending years working with the bodies.
He added: “After understanding their requirements and the surgery themselves developing plans we developed an appraisal for offering the centre as their requirements.
“We took their requirements and developed a plan to satisfy these which gave a significant cost reduction, this was still deemed unviable from their perspective.
“This was undeniably disappointing considering the significant time and cost that we had invested into the scheme.
“Having said this we are comfortable that we gave the most efficient and cost-effective plans possible.
“We could have offered nothing more to assist in the development and wish them all the best into the future.”
A spokesperson for NHS Kent and Medway said: “After careful consideration of a further proposal from the developer, the GP practice, in discussion with NHS Kent and Medway, has decided to pursue other opportunities for expansion.
“The practice and NHS Kent and Medway are fully committed to exploring options and finding a suitable location that provides the necessary space and meets NHS requirements.”
The news comes a month after Labour MP Kevin McKenna was voted into office.
He told KentOnline after the election on July 4 that he wants to tackle GP shortages in the Sittingbourne and Sheppey constituency.
Mr McKenna said that while the news is “really disappointing” this is just one scheme, and alone it would not have solved the GP shortage in the constituency.
He explained: “If the facility was not right and was not going to fulfil the needs of a modern health centre then it shouldn’t go ahead.
“The NHS is actively looking for other opportunities that they cannot tell us about at the moment but I will strongly back when plans come forward.
“Fixing the GP shortages in the area isn’t just about bricks and mortar it’s about providing the incentives to get GPs to come to the area. That can come from pay and packages which the NHS provide but also what the area offers. This includes the transport links, the housing and education.
“So it’s never as simple as building one new centre.
“I am looking at health care across the constituency and I am looking at this decision optimistically as a conversation starter in other projects.
“Of course, it’s really disappointing, I live just around the corner from the site and it does need regenerating as it's an eye sore and we need housing in the area, but it wouldn’t have solved the GP shortage in the area.
“We need to come up with a plan that will get the number of GPs right.
“I am also keen to see what the space for the medical centre will become, as developments need to come with something that will be an asset to the community.”
The health hub would have been built on the vacant site formerly occupied by the Bell Centre which was built in the 1970s and was once home to Sainsbury's. It was demolished in stages in the mid-2000s.
The site has also been earmarked for almost 200 apartments and a pharmacy which are expected to go ahead as planned.
The centre would have been on the two ground floors of a four-storey building, with the third and fourth floors home to 12 apartments.
Mr Kassam confirmed this part of the project will still go ahead and is in “conversations” with Swale council to find an “alternative use” for the medical centre building.
Meanwhile, the authority says it will continue to work with the intergrated care board and the GP to “explore potential options to secure GP expansion” in Sittingbourne.
The redevelopment has been in the pipeline since 2016 after the Aria Group purchased the site in 2015. It expected construction to begin in April 2018.
But planning permission wasn’t approved until 2021 and “minor amendments” were made to plans in November 2022, which included a larger medical centre.
To see more planning applications and other public notices for your area, click here.
The need for more GPs in Swale was highlighted in October when Swale council asked for government intervention.
The borough is grappling with one of the lowest GP to patient ratios in the country and has even faced calls for cheaper houses to entice doctors in.
Councillors pointed to population growth in Swale as a reason for GP appointment shortages.
Between 2011 and 2021 the number of people living in the borough has increased by 11.7% up to 151,700, well above the national average of 6.6%.