Memorial Health planning new rehab hospital on Springfield’s west side

By Benjamin Cox on November 11, 2026 at 9:27am

A new 66-million-dollar rehabilitation hospital is being proposed for Springfield’s far west side.

According to the Illinois Times, Memorial Health is partnering with Alabama-based Encompass Health to construct a 60-bed rehabilitation facility near the intersection of Alex Boulevard and Milby Lane, about a half-mile northwest of the 4600 block of West Wabash Avenue.

The proposed Rehabilitation Institute of Springfield would provide inpatient care for patients recovering from strokes, brain injuries, fractures, and other medical conditions.

The proposed 63,250 square foot facility would replace and expand Springfield Memorial Hospital’s current inpatient rehabilitation unit, which operates with just 21 beds at the hospital’s site near downtown Springfield.

The proposal is expected to go before the Illinois Health Facilities and Services Review Board in December or January.

If approved, construction could begin in late 2027, with an anticipated opening in early 2029. A portion of what would become Bradfordton Road would be built north of Wabash Avenue to provide access to the facility from Wabash, according to Memorial officials. The closest rehabilitation hospital to Springfield is in Quincy.

The new hospital could eventually employ up to 190 people, although some employees may transfer from Springfield Memorial’s existing rehabilitation unit. The joint venture is also expected to sure up Memorial Health’s financial picture, as it continues to battle losses dating back to the Covid-19 pandemic.