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The former Buckland Hospital will be auctioned off next month despite claims from Dover’s MP that the site is not suitable for housing.
MP Charlie Elphicke claims it is contaminated with asbestos, and he would like to see it become a health and social care village instead.
The building was sold to Kent County Council after the new £24 million Buckland Hospital opened in June.
The houses behind the old hospital have been retained by the East Kent Hospitals University NHS Foundation Trust and will be turned into a dementia village, but the MP says this isn’t enough.
He said: “I’m delighted that the hospital trust is taking forward the dementia village.
“However, I’m surprised they are selling part of the rest of the site for housing as it is extremely contaminated and will require very costly decontamination before any housing development can be brought forward.”
He claims the building, which has been left derelict, is contaminated with asbestos, medical resources and old metal.
Mr Elphicke said: “This is why the site should be used for step-up, step-down care beds and beds in which people can recover following hospital operations and a large care facility to improve social care in Dover.
“I do hope that this will eventually be what happens with this important site.”
He claims it could cost a developer millions of pounds before the site is ready for housing.
Last week the Mercury reported that death certificates and mortuary lists had been left at the old Buckland Hospital and posted on the internet by trespassers.
Auctioneer Kevin Gilbert said the site had huge potential and could be converted or redeveloped, subject to consents.
The freehold guide price is £300,000 to £320,000.
Trust spokesman Yasmin Khan confirmed that, following confirmation of funding later this year, the old houses would be transformed into a dementia village.
KCC said: “KCC acquired property in and around Buckland Hospital from the East Kent Hospitals University NHS Foundation Trust a few months ago, but the building in question is surplus to requirements and we have decided to dispose of it at auction.”
The sale takes place on Monday, June 13, at the Clive Emson Conference Centre in Detling, Maidstone, at 11am.