PeaceHealth to List University District Property for Sale
Since the closure of PeaceHealth Sacred Heart Medical Center at University District in December 2023, PeaceHealth’s focus has been on the future of the remaining services on the UD campus, as well as reinvesting in Lane County.
When PeaceHealth built Sacred Heart Medical Center at RiverBend in 2008 as a regional hospital to serve Springfield, Eugene, and the surrounding area, most services were relocated to the new campus. Only three hospital-based services remained at University District when the hospital closed – inpatient rehabilitation, inpatient behavioral health, and the emergency department with a small medical unit. PeaceHealth is breaking ground in March on a standalone inpatient rehabilitation hospital near the RiverBend Annex in Springfield that will nearly double the current unit’s capacity and establish the region’s first traumatic brain injury unit. PeaceHealth has also announced plans for Timber Springs Behavioral Health Hospital, which will triple the current unit’s capacity and expand vital care to adolescents and the elderly. In addition, PeaceHealth is nearing the start of renovations at the RiverBend emergency department, which will improve patient flows and decrease wait times.
“PeaceHealth understands the importance and potential of this piece of property in the core of Eugene, and we are excited to see what the future holds for its development.”
– Dr. Jim McGovern, Chief Hospital Executive, PeaceHealth Oregon
These new facilities, combined with additional renovations planned at RiverBend, will add 196 PeaceHealth inpatient beds, compared to the 117 beds that were licensed at University District.
With those plans now in place, PeaceHealth has decided to publicly list the University District campus property for sale. Commercial real estate firm Jones Lang LaSalle (JLL) has been retained to broker the sale.
Most importantly, PeaceHealth will retain all current clinics at University District, the Urgent Care at University District, and the inpatient behavioral health unit, in their current locations both during and after the sale, leasing back its current spaces. Long-term, PeaceHealth is exploring alternate locations for all remaining UD services, but in the coming year, clinics and services will remain in their current locations.
PeaceHealth is actively planning for growth in Lane County, not contraction.
As long-time neighbors, PeaceHealth has notified both the University of Oregon and Bushnell University about the sale and will connect them with both the broker team and potential future developers. Non-medical tenants at University District will not be disrupted in the near term and will be connected with future developers as the property is reimagined.
About PeaceHealth
PeaceHealth, based in Vancouver, Wash., is a not-for-profit Catholic health system offering care to communities in Washington, Oregon and Alaska. PeaceHealth has approximately 16,000 caregivers, a medical group practice with more than 1,100 providers and nine medical centers serving both urban and rural communities throughout the Northwest. In 1890, the Sisters of St. Joseph of Peace founded what has become PeaceHealth. The Sisters shared expertise and transferred wisdom from one medical center to another, always finding the best way to serve the unmet need for healthcare in their communities. Today, PeaceHealth is the legacy of the founding Sisters and continues with a spirit of respect, stewardship, collaboration and social justice in fulfilling its Mission. Visit us online at peacehealth.org.
