The University of Michigan Board of Regents has given the green light to two major projects that will expand health services at University of Michigan (UM) Health‑Sparrow, including a dedicated behavioral health hospital and a new ambulatory surgery facility.
The 64-bed behavioral health hospital, a project estimated at $83 million, will replace services currently housed at the century-old Saint Lawrence campus near Pennsylvania Avenue and Jerome Street. The new facility will serve patients ranging in age from children to older adults and will add inpatient psychiatric care for adolescents, addressing growing demand for youth mental health services in the region. University officials say emergency departments have experienced increased volume tied to behavioral health needs, leading to longer wait times and capacity challenges.
Plans for the new hospital include a modern design intended to promote patient safety, privacy and recovery while supporting staff workflow. The facility will also create opportunities for expanded clinical research and treatment innovation through collaboration with Michigan Medicine in Ann Arbor. In addition, UM Health-Sparrow will partner with Sheppard Pratt, a Maryland-based behavioral health system, for operational management and clinical expertise.
Regents also authorized construction of a $60 million ambulatory surgery center west of the Lansing hospital near Michigan and Pennsylvania Avenues. The center will initially include four operating rooms, with space reserved for future expansion. Some procedures currently performed at the St. Lawrence campus, along with selected cases from the Lansing hospital, will transition to the new site. Plans also call for the installation of a new MRI unit to improve imaging access and reduce wait times for cardiac patients.
Health system leaders say the projects are expected to strengthen regional access to both psychiatric and surgical care. Expanded inpatient behavioral health capacity could reduce strain on emergency rooms, law enforcement and community providers, while the additional operating rooms are intended to improve scheduling flexibility and shorten backlogs.
The approvals mark continued investment in mid-Michigan since Sparrow Health System joined the University of Michigan’s statewide network. Officials say the projects are part of a larger plan to update facilities and expand access to specialty care beyond Ann Arbor.
Construction on both facilities is slated to begin this summer, with work expected to be completed in 2028.
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