Bushnell Expands Its Footprint: Acquiring Former PeaceHealth University District Hospital Buildings

Bushnell University is set to broaden its campus significantly with a purchase of 125,000 square feet from the former PeaceHealth Sacred Heart Medical Center University District. This acquisition will support the university’s nursing and clinical mental health counseling programs. President Joseph Womack announced the deal at a convocation on August 26, revealing that the university aims to finalize the acquisition by the end of September.

The purchase comes after the emergency department of PeaceHealth closed in December 2023, citing financial challenges and low usage. As a result, many patients have transitioned to nearby facilities, such as the PeaceHealth Sacred Heart Medical Center at RiverBend in Springfield. In March 2025, PeaceHealth unveiled its plan to sell the University District property, which spans 1.2 million square feet across 12.53 acres, while still leasing some areas.

This deal includes two main buildings on East 11th Avenue. One building, at 770 E. 11th Ave., houses PeaceHealth’s behavioral health unit and spans over 88,000 square feet. The other, CMER Hall at 722 E. 11th Ave., currently accommodates Bushnell’s nursing school, covering more than 36,000 square feet. The university will also acquire a small parking lot at the corner of Hilyard Street.

The additional space will enable Bushnell to expand its nursing program and introduce new fields, such as occupational and physical therapy. According to Womack, this move is part of a long-term plan for growth, stating, “This is ten-plus years of our future development.”

Bushnell University and PeaceHealth have a rich history. Founded in 1895, Bushnell has roots that connect to local health care institutions, including Pacific Christian Hospital established by Eugene C. Sanderson in 1924. PeaceHealth took over the hospital in 1936, further intertwining their legacies. Recently, PeaceHealth donated clinical lab space to support Bushnell’s nursing program, which has received millions in grant funding to bolster enrollment—an essential move considering Oregon’s nursing shortage.

As of the 2024-25 academic year, Bushnell has enrolled 761 students and, with this new acquisition, will have increased campus capacity by 151% since 2012. The expansion comes at a critical time; while Oregon boasts a record number of licensed registered nurses, staffing shortages remain a pressing issue in the healthcare sector. This growth not only enhances Bushnell’s educational offerings but helps address a crucial need for more healthcare professionals in the community.

“We’re excited to have these buildings stay in the community and transition from health care to health care education,” said Jim McGovern, the chief executive of PeaceHealth. This step marks a significant opportunity for both institutions as they work together to prepare future healthcare leaders.

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