The former Warley Hospital, which supported Phillip Island’s small but fluctuating population since 1923, is understood to have sold to developers.
Local industry sources expect the 4,106 square metre site will be developed as apartments over the next couple of years, but this could not be confirmed .
The site is one block west from the main street of Phillip Island’s town centre, Cowes.
Any redevelopment could capture water views, albeit over other apartments.
Speculation part the former hospital may be redeveloped into some kind of health-based building, could not be confirmed.
The hospital shut early last year after a $2.5 million lifeline promised by the now federal opposition, was not matched by the ALP.
The nearest hospital is Wonthaggi, about 45 minutes away by road.