Terre Haute, Ind.-based Union Health has pushed back against the state attorney general’s opposition to its proposed acquisition of Terre Haute Regional Hospital, arguing in a letter that the merger is a “critical next step to secure healthcare for the community for years to come,” WTHI reported May 8.
Union Health’s letter comes after Indiana Attorney General Todd Rokita on April 17 formally opposed the health system’s proposed acquisition of the city’s only other hospital from Nashville, Tenn.-based HCA Healthcare, alleging that the consolidation would create a “regional monopoly” and harm competition, care access and affordability in the Wabash Valley.
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 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.
Mr. Rokita argued in his letter that the merger would “lead to the monopolization of Terre Haute hospital systems that (would) be unchecked in raising healthcare costs, stifling innovation, suppressing wages, and reducing access to care.”
Union Health said in its letter 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.
“Health insurance plans determine pricing for services for 98.4% of its patients, and the hospital is not free to set prices at any level,” Union Health said in the letter. “Federal government programs will continue to set rates for Union Hospital and commercial and Medicare Advantage plans will continue to robustly negotiate rates with Union Hospital as they do today.”
The proposed merger is also being opposed by the Federal Trade Commission, which argued that the combination would eliminate competition, leading to higher healthcare costs, worse outcomes for patients and lower wages for hospital workers in the region.
