The Government is to spend £200 million creating a new home base for the Defence Medical Services (DMS), it was announced today.
Junior defence minister Derek Twigg said the Whittington Barracks in Lichfield will become the central focus for British military medicine.
The Defence Medical Services Training Centre will be moved from Aldershot to Lichfield to create a "critical mass" of expertise in the Midlands.
The Royal College of Defence Medicine is based at Selly Oak Hospital in Birmingham, within easy travelling distance of Lichfield.
In a written Commons statement Mr Twigg said: "The Whittington site offers excellent potential for meeting DMS needs."
By 2014 the Ministry of Defence expects 2,000 military and civilian personnel to be based at Lichfield.
Mr Twigg told MPs: "The decisions announced today about military medical accommodation in the Midlands are further evidence of the Government's commitment to the healthcare of service personnel."