Eugene’s Hospital Is Gone—And Now It’s Up for Sale

It’s April 1, 2025, and no—this isn’t an April Fools’ joke. Eugene’s only hospital is gone, and now the building is officially for sale.

When PeaceHealth announced in 2023 that it would be shutting down Sacred Heart Medical Center at University District, many in the community assumed there would be a fight to keep it open. But by December 1 of that year, the ER closed, and the rest of the facility followed. Now, Eugene—Oregon’s second-largest city—no longer has a hospital.

And this week, PeaceHealth made it official: the University District property is on the market.

What Happens Now?

With no hospital in Eugene, anyone needing emergency care must now go to:

• PeaceHealth Sacred Heart Medical Center at RiverBend in Springfield (six miles away).

• McKenzie-Willamette Medical Center, Springfield’s other hospital, but with limited capacity.

• Good Samaritan in Corvallis or hospitals in Portland for overflow cases.

That’s it. Those are the options.

The problem? The system is already buckling under the weight of this change.

How’s That Going?

• Ambulances are seeing longer transport times—especially when traffic backs up on I-105 or Gateway Street.

• ER wait times have surged—RiverBend is absorbing thousands of new patients, and McKenzie-Willamette is no relief valve.

• Mental health services are in limbo—while PeaceHealth still operates an inpatient behavioral health unit on the old hospital site, its long-term future remains unclear.

• University of Oregon students now lack an emergency care center nearby—a campus of over 22,000 students with no hospital in walking distance.

For a growing city like Eugene, this is not a good look.

The Hospital Is for Sale—What’s Next?

The University District property is now listed for sale, with real estate firm Jones Lang LaSalle handling the deal. Lane County valued the site at over $43 million in 2024, though what it actually sells for remains to be seen.

Potential outcomes include:

• Redevelopment into housing or commercial space—which Eugene needs, but doesn’t solve the healthcare crisis.

• A new healthcare facility—but not a hospital—PeaceHealth has hinted at continuing some medical services on-site, but don’t expect a return of full ER services.

• An empty, abandoned building collecting dust—we’ve seen it before, and with no confirmed buyer yet, it’s a real possibility.

PeaceHealth’s Justification—And the Community’s Response

PeaceHealth has argued that consolidating services at RiverBend will lead to more efficient, higher-quality care. They’ve also announced plans to build a new inpatient rehabilitation hospital near RiverBend and develop Timber Springs Behavioral Health Hospital, which would add inpatient beds for mental health services.

But those projects won’t replace the lost ER in Eugene.

Community leaders and healthcare advocates continue to push for more solutions, but for now, Eugene’s hospital is gone, and there’s no plan to bring one back.

What Does This Mean for Eugene?

Eugene has officially joined a growing list of cities across the country that have lost their hospitals due to corporate restructuring. What was once a full-service hospital is now just a real estate listing.

The big question: Does Eugene fight for a new hospital, or are we stuck with this new reality?