OSF Healthcare to merge Urbana and Danville hospitals into one system

OSF Healthcare administrators plan to consolidate Urbana's Heart of Mary Medical Center (pictured above) and Danville's Sacred Heart Medical Center into one hospital with two campuses.


URBANA
— A major healthcare provider is restructuring its facilities in Champaign and Vermilion counties.

OSF Healthcare says its Heart of Mary Medical Center in Urbana and the Sacred Heart Medical Center in Danville will consolidate into one hospital with two campuses. The organization says the move will expand mental health treatment options and reduce duplicate services  — though some employees say the announcement caught them off guard.

Administrators said the Urbana location will specialize in inpatient behavioral health while some inpatient and emergency services will shift to Danville.

The shift is driven by declining inpatient use, financial losses, and a need for more efficient staffing, according to the organization. 

“We want to make sure we’re putting the right resources, the right services in the right places to best care for the communities we serve,” said JT Barnhart, president of OSF’s Urbana and Danville hospitals, during a press conference last week.

OSF said the change will allow the Urbana campus to offer more behavioral care for young adults, seniors and patients. 

Barnhart said the organization’s goal is to retain as many employees as possible.  No layoffs are currently being planned, and over 170 open roles are available locally according to a press release. 

But some employees told IPM News they are worried for the hospital’s future. 

“It will be harder to access care,” claimed one OSF employee, who asked to remain anonymous out of a fear of retaliation. “We will have much longer wait times, months longer to see providers, and I think as a result of that, people will die, and have worse health outcomes.”

The transition still needs to be reviewed by the the Illinois Health Facilities and Services Review Board. If approved, administrators say the new structure could be completed by Jan. 1, 2026.

OSF Healthcare is a financial supporter of Illinois Public Media. IPM News covers the hospital as it does any other organization.

Penny Bradford

Patricia "Penny" Bradford is a senior majoring in journalism and minoring in public relations at the University of Illinois-Urbana Champaign. She is a producer for Dialogue and a native of the Champaign-Urbana area.