Nashville, Tenn.-based HCA Healthcare said it will need to “seriously consider ending services or closing” Terre Haute (Ind.) Regional Hospital if its merger with Union Health is denied, NBC affiliate WTWO reported May 13.
The merger is being reviewed under Indiana’s Certificate of Public Advantage statute, which allows healthcare mergers to bypass typical antitrust scrutiny if the benefits to the community clearly outweigh any loss of competition. Union Health — also based in Terre Haute — submitted a new COPA application in February to acquire the 278-bed hospital, after withdrawing its previous application in November — just nine days before the state was set to make a final decision on the transaction.
Union Health’s proposed acquisition of the HCA-owned hospital is opposed by the Federal Trade Commission and Indiana Attorney General Todd Rokita. Mr. Rokita said in an April 17 letter to the Indiana Department of Health that the consolidation would create a “regional monopoly” and harm competition, care access and affordability in the Wabash Valley.
In a letter sent to the Indiana Department of Health, HCA said that Terre Haute Regional Hospital’s finances are declining, making it difficult for the hospital to be sold, according to the report. HCA’s “extensive search” included Morgan Stanley approaching six potential purchasers beginning in 2019 and 2020, but none of the systems expressed interest in acquiring the hospital.
HCA said it only reengaged with Union Health about a possible deal after it was clear there were no alternative purchasers, according to the report.
Union Health said in response to Mr. Rokita’s opposition that acquiring Terre Haute Regional Hospital “will help preserve and broaden local access to care, protect cost efficiency and build a healthier, more resilient future by leveraging combined resources.”
“If the COPA application is approved, Union Hospital is committed to investing at least $117 million in various services and community health programs and recruiting 30+ new primary and specialty care providers — leading to increased access, more jobs and better care for residents,” the letter said.
The Indiana Department of Health is reviewing the COPA application and a decision is expected in June, according to the report.
