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PeaceHealth announces plans to close hospital near University of Oregon campus

Pending regulatory approval, most services will be moved to Sacred Heart Medical Center at RiverBend in Springfield.
Credit: PeaceHealth Oregon

PORTLAND, Oregon — PeaceHealth announced late Tuesday afternoon that it's beginning the process of closing its University District hospital in Eugene.

In a news release, the health system called the hospital "underutilized" and said it loses an average of $2 million per month. The University District hospital sees an average of 95 patients daily, according to PeaceHealth.

Ambulatory and behavioral health services will stay at the University District hospital. However, pending regulatory approval, most services — including the emergency department and inpatient rehabilitation — will be moved less than six miles away to Sacred Heart Medical Center at RiverBend in Springfield. 

PeaceHealth said it will phase out emergency department services at the University District location in November. The 27-bed inpatient rehabilitation unit will be temporarily located to RiverBend in early 2024.

"As the needs of the Lane County community evolve, PeaceHealth services and sites of care also need to evolve to ensure compassionate, high-quality care now and in the future. We believe consolidating some services at RiverBend will provide an enhanced care experience," said Alicia Beymer, chief administrative officer for PeaceHealth Sacred Heart Medical Center University District. 

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KEZI reported that PeaceHealth officials sent an email to caregivers and providers saying they made the decision to close the University District location because they believe RiverBend can handle the increase in patients, and because it would cost millions of dollars to make the University District location earthquake resistant. As of Tuesday afternoon, KEZI said it was working to confirm those details. 

The Oregon Nurses Association (ONA) said it "strongly" opposes the closure. In a statement released Tuesday afternoon, ONA said it's in contact with the Oregon Health Authority to determine if there are regulatory ways to block the closure.

"At this time, it is unclear how PeaceHealth intends for the residents of Eugene to access crucial, life-saving services like those provided by the University District Emergency Department," ONA's statement said, in part. "This is particularly concerning given that wait times at PeaceHealth Sacred Heart Medical Center Riverbend, the closest alternative hospital to University District, were over 18 hours for some patients just yesterday. Closure of the University District hospital would have an enormous impact on Riverbend’s capacity to provide care to the more than 200,000 people in Eugene and the surrounding areas."

ONA also said that its nurses recently settled a four-year agreement with the hospital after lengthy contract negotiations.

"At no point during those negotiations were nurses given even the slightest hint that a closure of University District was on the table," ONA said.

The union said more than 100 of its nurses will be impacted by the closure. ONA represents more than 16,000 nurses and health workers across the state.

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