By HFT Staff

OSF HealthCare and Katherine Shaw Bethea Hospital (KSB Hospital) have entered into exclusive negotiations, anticipating a full merger. A term sheet has been signed, and the two organizations will spend the next several months finalizing agreements and seeking the necessary regulatory approvals. 

KSB Hospital conducted a thorough and comprehensive search before selecting OSF HealthCare as its partner. The rigorous process spanned several months, with numerous options considered. The resulting agreement includes $40 million in funding to support facility renovations, improve access to care locally and create seamless referrals to subspecialties. Education, including the residency programs at KSB Hospital, is also a key component of the agreement. 

When the merger is finalized, a local community advisory council will be established to provide advice and counsel to hospital management and OSF. The council will focus on insight, guidance and the development of local strategies, in addition to providing feedback on the management of local facilities. Upgrades to technology and expanded digital care offerings are other innovations the organizations intend to provide. 

KSB Hospital was established in the late 1800’s as an independent nonprofit organization. KSB has 900 employees and 91 practitioners and provides specialty care at six locations in Lee and Ogle counties.