The former Labour government put forward legislation to create the OHPA, with the aim of creating an independent body to adjudicate on fitness-to-practise matters.
But the coalition government put the body's future in doubt when it launched a consultation earlier this year to seek views on whether to proceed with establishing the body.
The government has confirmed it believes that further regulation by OHPA is ‘not necessary’.
The DoH said that latest estimates suggest it would cost up to £16m to establish the OHPA. It concluded that modernisation of the GMC’s adjudication processes is the ‘most proportionate’ way forward.
GMC chief executive Niall Dickson said: ‘We are committed to taking forward a programme of major reform to create an efficient and modern adjudication function which operates independently from our other work.
‘The new approach will save doctors and taxpayers millions of pounds but we do understand it must also deliver tangible benefits.’