The future of the Standish Hospital site near Stroud has been put in the hands of the government.
There are two bids to run the site
Health Minister John Hutton is to decide between two bids for the use of the 30-acre site, which will close in September.
One proposal comes from the Standish Community Initiative which previously said it wanted to develop a community- based health and social care centre
The other bid is from the private sector, also for health-related use.
The Community Initiative wants a hospital providing clinical and nursing care, surgery, physiotherapy and osteopathy; plus a range of complementary health services and respite care.
Councillor Chas Fellows said "I hope Mr Hutton will make an early decision on the future of the site.
"My worry is that any delay will result in it being left empty and will begin to deteriorate. This is something we would all like to avoid."
No details are currently available on the private sector bid.
The hospital building was given to the Red Cross nearly a century ago.
Pressed into service as a military hospital, it was also used to treat TB.
It now specialises in orthopaedics, rheumatology and respiratory care.