diff --git a/database/rrd.h b/database/rrd.h
index 72c9f1746b..869d665d86 100644
--- a/database/rrd.h
+++ b/database/rrd.h
@@ -997,7 +997,6 @@ struct rrdhost {
                                                     // the actual per tier is at .db[tier].mode
 
     char *cache_dir;                                // the directory to save RRD cache files
-    char *varlib_dir;                               // the directory to save health log
 
     struct {
         RRD_MEMORY_MODE mode;                       // the db mode for this tier
diff --git a/database/rrdhost.c b/database/rrdhost.c
index 1bd878ab6b..5d4dce1a08 100644
--- a/database/rrdhost.c
+++ b/database/rrdhost.c
@@ -333,10 +333,8 @@ int is_legacy = 1;
         rrdhost_option_set(host, RRDHOST_OPTION_DELETE_ORPHAN_HOST);
 
     char filename[FILENAME_MAX + 1];
-    if(is_localhost) {
+    if(is_localhost)
         host->cache_dir  = strdupz(netdata_configured_cache_dir);
-        host->varlib_dir = strdupz(netdata_configured_varlib_dir);
-    }
     else {
         // this is not localhost - append our GUID to localhost path
         if (is_in_multihost) { // don't append to cache dir in multihost
@@ -353,9 +351,6 @@ int is_legacy = 1;
             if(r != 0 && errno != EEXIST)
                 error("Host '%s': cannot create directory '%s'", rrdhost_hostname(host), host->cache_dir);
         }
-
-        snprintfz(filename, FILENAME_MAX, "%s/%s", netdata_configured_varlib_dir, host->machine_guid);
-        host->varlib_dir = strdupz(filename);
     }
 
     // this is also needed for custom host variables - not only health
@@ -502,7 +497,6 @@ int is_legacy = 1;
                  " (to '%s' with api key '%s')"
                  ", health %s"
                  ", cache_dir '%s'"
-                 ", varlib_dir '%s'"
                  ", alarms default handler '%s'"
                  ", alarms default recipient '%s'"
          , rrdhost_hostname(host)
@@ -521,7 +515,6 @@ int is_legacy = 1;
          , host->rrdpush_send_api_key?host->rrdpush_send_api_key:""
          , host->health.health_enabled?"enabled":"disabled"
          , host->cache_dir
-         , host->varlib_dir
          , string2str(host->health.health_default_exec)
          , string2str(host->health.health_default_recipient)
     );
@@ -1204,7 +1197,6 @@ void rrdhost_free___while_having_rrd_wrlock(RRDHOST *host, bool force) {
     string_freez(host->program_version);
     rrdhost_system_info_free(host->system_info);
     freez(host->cache_dir);
-    freez(host->varlib_dir);
     freez(host->rrdpush_send_api_key);
     freez(host->rrdpush_send_destination);
     rrdpush_destinations_free(host);
diff --git a/health/health.c b/health/health.c
index e333dfe905..1e20b51b70 100644
--- a/health/health.c
+++ b/health/health.c
@@ -753,7 +753,8 @@ static void health_main_cleanup(void *ptr) {
     log_health("Health thread ended.");
 }
 
-static void initialize_health(RRDHOST *host, int is_localhost) {
+static void initialize_health(RRDHOST *host)
+{
     if(!host->health.health_enabled ||
         rrdhost_flag_check(host, RRDHOST_FLAG_INITIALIZED_HEALTH) ||
         !service_running(SERVICE_HEALTH))
@@ -786,19 +787,6 @@ static void initialize_health(RRDHOST *host, int is_localhost) {
 
     char filename[FILENAME_MAX + 1];
 
-    if(!is_localhost) {
-        int r = mkdir(host->varlib_dir, 0775);
-        if (r != 0 && errno != EEXIST)
-            error("Host '%s': cannot create directory '%s'", rrdhost_hostname(host), host->varlib_dir);
-    }
-
-    {
-        snprintfz(filename, FILENAME_MAX, "%s/health", host->varlib_dir);
-        int r = mkdir(filename, 0775);
-        if(r != 0 && errno != EEXIST)
-            error("Host '%s': cannot create directory '%s'", rrdhost_hostname(host), filename);
-    }
-
     snprintfz(filename, FILENAME_MAX, "%s/alarm-notify.sh", netdata_configured_primary_plugins_dir);
     host->health.health_default_exec = string_strdupz(config_get(CONFIG_SECTION_HEALTH, "script to execute on alarm", filename));
     host->health.health_default_recipient = string_strdupz("root");
@@ -1039,7 +1027,7 @@ void *health_main(void *ptr) {
 
             if (unlikely(!rrdhost_flag_check(host, RRDHOST_FLAG_INITIALIZED_HEALTH))) {
                 rrd_unlock();
-                initialize_health(host, host == localhost);
+                initialize_health(host);
                 rrd_rdlock();
             }