The new building opened on October 17, 1926, but after the introduction of streptomycin in 1943, the number of tuberculosis cases gradually lowered until there was no longer need for such a large hospital.

The building was reopened in 1962 as Woodhaven Geriatric Center, a nursing home primarily treating aging patients with various stages of dementia and mobility limits, as well as the severely mentally handicapped.

He and architect Milton Thompson wanted to convert it into a minimum-security prison for the state, but the developers dropped the plan after neighbors protested.

Todd and Thompson then proposed converting the hospital into apartments, but they counted on Jefferson Fiscal Court to buy around 140 acres (57 ha) from them for $400,000, giving them the money to start the project.

Alberhasky's Christ the Redeemer Foundation Inc. made plans to construct the world's tallest statue of Jesus on the site, along with an arts and worship center.

The Mattinglys hold tours of Waverly Hills and host a haunted house attraction each Halloween, with proceeds going toward restoration of the property.

[18][19] Waverly Hills Sanatorium hosted the last show of the touring music festival Sounds of the Underground on August 11, 2007.

The show featured prominent acts in the extreme metal and metalcore scene, including Job for a Cowboy, The Acacia Strain, Hatebreed, Shadows Fall, Chimaira, GWAR, Cameo, Lamb of God, and The Number Twelve Looks Like You.

Similar festivals or concerts will likely not happen again at the Waverly Hills Sanatorium, due to complaints made by local residents.

According to a number of stories and anecdotes, during a limited time between the 1920s and 1940s the tunnel also served to transport corpses to a waiting ambulance at the bottom of the hill, sparing patients the knowledge that someone had died.