The Indiana Health Department will decide in the coming weeks whether to approve the merger of two Terre Haute hospitals in what would be the last deal of its kind, Inside Indiana Business reported June 18.
Union Health is seeking to acquire Terre Haute Regional Hospital under the state’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.
The deal is the last one that will be considered under the COPA statute, according to the report. Indiana Sen. Ed Charbonneau, an architect of the 2021 law, introduced legislation this year that prohibits further COPA submissions. The legislation was passed and signed into law by Gov. Mike Braun. Mr. Charbonneau said in January that he was seeking to repeal the law because of concerns about its effect on competition and patient care.
The proposed merger is being reviewed for the second time. Union Health withdrew a COPA application in November, just nine days before the state was set to make a final decision on the transaction. Union Health submitted a new application in February seeking to acquire the 278-bed Terre Haute Regional Hospital, which is operated by Nashville, Tenn.-based HCA Healthcare.
The deal is opposed by Indiana Attorney General Todd Rokita and the Federal Trade Commission. Mr. Rokita has argued that the merger would create a regional monopoly and harm competition, care access and affordability in the Wabash Valley.
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,” it said.
HCA has said it will need to “seriously consider ending services or closing” Terre Haute Regional Hospital if the deal is denied.
The Indiana Hospital Association is supportive of the merger, according to the report. President Scott Tittle said in a statement that they have “every confidence” the deal would “allow continued access to high-quality, affordable care for patients in Wabash Valley.”
