Peoria, Ill.-based OSF HealthCare and Dixon, Ill.-based Katherine Shaw Bethea Hospital have shared plans to merge after entering into exclusive negotiations.
The two parties have signed a term sheet and plan to spend the next few months finalizing agreements and securing the required regulatory approvals, according to a May 10 news release.
KSB Hospital will receive $40 million in funding as the result of the agreement to support facility renovations, create referrals to subspecialties, and to improve local care access.
"The challenge of being a standalone, rural hospital in today's financial environment was an important element in our board's consideration," David Schreiner, PhD, president and CEO of KSB Hospital, said in the release. "OSF HealthCare shares our deep commitment to caring for the health of rural communities and has demonstrated innovative ways to transform health care for the benefit of all people they serve."
A local community advisory council will be created once the merger is complete to provide counsel and advice to OSF and the hospital management. The organizations also plan to offer expanded digital care and technology upgrades once they merge.
KSB Hospital is a nonprofit, independent healthcare provider that comprises 900 employees and 91 providers across six locations.
An integrated health system, OSF Healthcare features 16 hospitals. It has about 24,000 employees across more than 150 locations. It also has two colleges of nursing, OSF home care services, home health and hospice services, OSF HealthCare Foundation, and OSF Ventures.