PeaceHealth demolishes shuttered University District hospital

The shuttered PeaceHealth Sacred Heart Medical Center University District hospital and ancillary building are being demolished at 1255 Hilyard St. in Eugene, according to Joseph Waltasi, PeaceHealth spokesperson.

The hospital closed in 2023 due to financial losses and what PeaceHealth called an underutilization of services. Medical clinics continue to operate out of some of the space.

PeaceHealth listed the property for sale in March of 2025 and in August, Bushnell University purchased two properties that were part of the hospital complex to turn into classrooms for nursing students. The properties include the four-story Support Services building at 770 E. 11th Ave. and the three-story Center for Medical Education & Research building…

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