PeaceHealth plans to sell its South Campus property in Bellingham, Wash., as part of a broader strategy to refocus resources on its primary care facilities and invest in future service delivery.
The South Campus — formerly St. Luke’s Hospital — spans several acres across three parcels and includes a vacant hospital building, an apartment complex and a professional office building. PeaceHealth described the site as a “blank slate” with potential for thoughtful redevelopment, noting that much of the current use is dedicated to parking.
PeaceHealth said the sale aligns with ongoing investments at its St. Joseph Medical Center main campus in Bellingham, including development of the new Peter Paulsen Pavilion.
“With major investments already underway at the St. Joseph main campus — including the new Peter Paulsen Pavilion — this step allows PeaceHealth to concentrate resources where they will have the greatest impact on patient care and community health,” said Chuck Prosper, chief executive of PeaceHealth’s Northwest network.
PeaceHealth is engaging local partners — including the City of Bellingham and nonprofit organizations — throughout the planning process to ensure transparency and community involvement.
The planned sale comes amid broader organizational changes at PeaceHealth. In late October, the health system notified employees of a 2.5% workforce reduction, which included the elimination of 241 positions in Washington state. Most affected roles were in nonclinical and administrative shared services that support the system’s 16,000 caregivers across Washington, Oregon and Alaska.
PeaceHealth said the move “reflects the ongoing need to transform and modernize our operations in response to the rapidly changing healthcare landscape — one that has challenged even the most resilient healthcare organizations.”
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