@Jennie Berger gave you the whole kit & caboodle on Chicago zoning so I don't have a ton to ad, however, I'd highly encourage you to engage an architect like @Samuel Pavlovcik or @Prashanth Mahakali, both are awesome local Chicago resources.

I realize it's just an example and my comment is a generalization but just something to be aware of.With regards to the original question, I think it comes down more to what you want to do and what the offer is for walking away vs. rebuilding.That is the exact example a public insurance adjuster used when speaking to a local investor group a few years ago.

We’re considering reaching out to local hospitals to offer it as housing for travel nurses and doctors, but we’d love to hear any advice or suggestions on the best approach this?

I second all that has been said above - all of those folks referenced have been really helpful to me and have added lots of value to so many BP community members, especially in our local marketplace.

Make sure you check the local ordinances / zoning and talk to the local administrator to see if you can do what you are planning.

Best bet though is a local community business bank.. 

Anyone serious about selling their house will be instantly attracted tho this website because it is different than all the standard sites out there, it has personality, and character and it looks amazing.

If you ever have any specific questions about getting started or need to bounce some ideas off of a local investor let me know. 

Find and attend your local REI groups. 

Definitely stay away from the guru/seminars crowd and stick with the organic communities like BP and local free meetups.