EUGENE, Ore. — PeaceHealth has announced that it will publicly list the University District hospital property in Eugene for sale, more than a year after relocating many of its operations to the nearby RiverBend hospital in Springfield. The decision, made public on March 10, 2025, marks a significant change in healthcare infrastructure for the region.
The University District hospital, which has been in operation for decades, has seen a reduction in services since December 2023. While the majority of medical services were moved to RiverBend, the University District facility has continued to provide inpatient rehabilitation, behavioral health services, and a small emergency department. Despite the move, PeaceHealth assured the public that all existing services at the Eugene location will remain operational during and after the sale, with the hospital leasing back its current spaces.
PeaceHealth has retained the commercial real estate firm Jones Lang LaSalle to handle the sale of the property. In a statement, Dr. Jim McGovern, PeaceHealth’s Chief Hospital Executive for Oregon, emphasized the potential of the University District site, calling it a valuable asset in the heart of Eugene. “PeaceHealth understands the importance and potential of this piece of property, and we are excited to see what the future holds for its development,” McGovern said.
The decision comes nearly a year after the closure of multiple operations at the University District hospital. The facility, which once housed a broad range of medical services, has been restructured to focus primarily on rehabilitation and behavioral health. PeaceHealth’s move to list the property reflects broader shifts in its strategy to concentrate healthcare services at the RiverBend campus, located on the eastern side of the Willamette River in Springfield.
As the University District property goes up for sale, concerns have emerged among community members about access to healthcare in Eugene, particularly in emergency situations. With the majority of medical services now concentrated at RiverBend, residents have questioned the adequacy of emergency care should a disaster, such as an earthquake, impact the area.
In response to these concerns, PeaceHealth has committed to expanding and enhancing its RiverBend campus. Plans are underway to break ground on a new standalone inpatient rehabilitation hospital near the RiverBend Annex, which will include a dedicated traumatic brain injury unit. Additionally, a new behavioral health hospital is planned, and renovations to the RiverBend emergency department are set to begin soon. These upgrades aim to improve patient flow and reduce wait times in the emergency department.
The expansion efforts at RiverBend will add 196 inpatient beds to the campus, a significant increase compared to the 117 beds available at the University District. PeaceHealth officials have stated that these investments reflect the organization’s commitment to meeting the growing healthcare needs of Lane County, signaling a focus on growth rather than contraction.
While PeaceHealth moves forward with its plans for RiverBend, the future of the University District property remains uncertain. The sale of the land presents an opportunity for redevelopment, and local leaders and residents alike will be watching closely to see what comes next for this key piece of real estate in the core of Eugene.
