The adult inpatient hospitals of University of Michigan Health have consistently experienced high patient demand, experiencing occupancy rates of 90% and greater. This high demand has led to capacity constraints and creative uses of hospital inpatient capacity elsewhere, including at Trinity Health Ann Arbor. Through a collaborative arrangement, many of U-M Health’s emergency patients who require an inpatient stay, are admitted to an inpatient service (26 bed unit) located at Trinity Health Ann Arbor. Due to increasing demand of patients seen at Trinity Health, Trinity’s leadership has provided notice to regain access to its 26-bed unit, starting in October 2024 and completed by April 2025. As a result, U-M Health has developed a renovation plan of previously used clinical space in its University Hospital South facility on level five, currently used for non-clinical purposes. The renovation will create an observation patient unit of 26 beds, offsetting the loss of capacity at Trinity Health Ann Arbor.