Peoria, Ill.,-based OSF HealthCare plans to consolidate two of its hospitals in east central Illinois — Heart of Mary Medical Center in Urbana and Sacred Heart Medical Center in Danville — into a single hospital operating across two campuses.
Four things to know:
1. Under the plan, the Urbana campus will expand its focus on inpatient behavioral health services, aiming to fill critical gaps in mental healthcare across multiple populations — including young adults, individuals with co-occurring medical and psychiatric needs, and geriatric patients. Emergency and clinic services, inpatient beds, diagnostics and lab work will continue at the Urbana campus.
2. OSF cited several factors driving the move, including persistent financial losses, declining inpatient volumes and physician departures that have challenged the long-term viability of operating both hospitals independently. The health system said consolidating operations will help eliminate redundancies, address workforce shortages and create more efficient, innovative care delivery models.
3. The health system acknowledged that the transition may result in some layoffs but noted that more than 170 job openings are currently available locally, with more across the broader health system.
4. The merger is contingent on approval from the Illinois Health Facilities and Services Review Board. If approved, the transition will take effect Jan. 1, 2026.
