Peoria, Ill.-based OSF Healthcare has shared plans to consolidate two hospitals in east central Illinois, designating one as an inpatient behavioral health facility.
Under the change, OSF Heart of Mary Medical Center in Urbana and OSF Sacred Heart Medical Center in Danville will operate as a single hospital with two campuses under a new care model, pending state approval, according to a June 4 update from the health system. The Urbana campus will specialize in inpatient mental health treatment, with expanded services for young adults, patients with co-occurring medical and psychiatric conditions, and older adults.
Emergency care, diagnostics and lab services will continue to be offered at the Urbana location. OSF said the changes are in response to financial losses, declining inpatient volume and physician departures, as well as a broader effort to align services and address provider shortages in the region.
“By aligning services across both campuses, we can eliminate duplication, address provider shortages, and embrace new, innovative models of care,” OSF said in a news release.
The health system indicated the change will lead to job cuts, stating that they will work with any impacted workers to help them find new opportunities within the system.
The transition is expected to take effect Jan. 1, 2026, pending approval from the Illinois Health Facilities and Services Review Board.
