The NHS is looking to sell off Halesworth's disused Patrick Stead Hospital after a proposed community takeover of the building never came to fruition.
NHS Property Services (NHSPS) has notified Halesworth Town Council of its intention to start the disposal process for the Bungay Road property.
The Great Yarmouth and Waveney Clinical Commissioning Group announced the hospital would close in November 2015, pledging that the money saved would be used to fund other NHS beds in the area and at Beccles Hospital.
The Halesworth and Blyth Valley Partnership successfully registered the building as an asset of community value, paving the way for a takeover - but a buyer is yet to be found.
As part of the disposals process, community groups will have until August 6 to declare an interest in acquiring the property.
If any bid of this kind is received, they will then have six months to raise the funds to buy the property at market value.
In nearby Southwold, community group SouthGen successfully fundraised to buy the coastal town's former hospital - which is set to reopen as a community hub.
Community group SouthGen has been revamping the hospital for more than two years ahead of its reopening in the autumn.
Halesworth Town Council said in a statement: "The town council has received notice of the disposal process for the Patrick Stead Hospital.
"The building was registered as an asset of community value by the Halesworth and Blyth Valley Partnership around two to three years ago.
"This process allows the first option to buy the building to go to a community group before it goes on the open market.
"However, the Halesworth and Blyth Valley Partnership did not intend to get involved as they have always stated that the project was too large for them.
"The town council has also stated on several occasions that it did not have the resources to lead on a project of this size but it would offer help if a group could be formed.
"The council has asked for interested parties to come forward in the past so we could see if there was enough interest and the necessary expertise but with very little success."
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