In December of 1987, a private corporation including some of the physicians on staff, purchased the hospital and changed the name to Albany Area Hospital. On October 1, 1989, the hospital and medical center were purchased as a unit by Unity Family Healthcare of Little Falls. they were operated as a Catholic not-for-profit charitable facility in conjunction with a philosophy and mission of Franciscan Sisters Health Care, Inc.

With changes in health care and the age of the downtown medical center, a New Vision in Rural Healthcare program was set in place. The goal was to relocate the clinic into the west wing of the hospital. The obstetric area was moved to the east medical wing with the new delivery suite opening in April of 1992. The new medical center, positioned in that now available west wing, opened July 22, 1992. Eight new exam rooms, physicians offices and a comfortable waiting area welcomed patients. This change left the hospital with 17 private rooms. Home Care, a division of Unity Family Home Care was added July 1, 1993.

As of October 1, 1993, the sponsorship of all the health care facilities of the Franciscan sisters were transferred to the Catholic Health Corporation (CHC). The mission of CHC is a partnership of religious congregations who work collaboratively to perpetuate the healing mission of Jesus by providing a full continuum of health care service, management support for its facilities, and leadership for the future development of the healing ministry. The change continued when on July 1, 1996, CHC became a member of a larger organization of Catholic Health Initiatives (CHI). These changes not only demonstrate continuous progress, but also the strong healing mission of the religious affiliation. Rapid changes in medicine are evident in the ongoing updates of an in-house services and the additional outreach services. Newly added services include cardiac stress testing, orthopedic surgery, neurology, hospice and consultation outreach specialists in obstetrics and neurosurgery.