The Easter Seals Child Development Center is located on the campus of Children's Hospital Central California, off Highway 41 and Avenue 9 in Madera County.
Since 2003 the center has enrolled infants and children of differing physical, emotional and academic abilities in the same environment.
Hospital officials says it will close in June, and they blame slow growth and a sluggish economy.
"We heard there was going to be a housing development around this area and there were going to be thousands of and thousands of homes. Unfortunately, those homes never materialized so the center has sort of always been under-utilized and has operated at a financial loss since it's inception," Jill Wagner of Children's Hospital said.
The hospital claims the loss is about $150 thousand dollars a year.
Once the center closes in June the hospital plans to move its physical and occupational therapy services from its location in Fresno into the building in Madera County.
The hospital says the move will bring patients closer to the services of the hospital and save it hundreds of thousands of dollars in rent.