The Federal Trade Commission Urges Indiana Department of Health to Deny Merger Application for Union Hospital and Terre Haute Regional Hospital
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The Federal Trade Commission reiterated its stance on Monday, urging the Indiana Department of Health to reject the application for Union Hospital and Terre Haute Regional Hospital in Indiana to merge.
This marks the second attempt by Union Health, which includes Union Hospital, to acquire Terre Haute Regional Hospital, owned by HCA Healthcare. The proposed merger under a certificate of public advantage (COPA) has raised concerns regarding anticompetitive effects, with the FTC emphasizing the negative impact on patients and healthcare workers.
According to Clarke Edwards, acting director of the FTC’s Office of Policy Planning, competition is essential for driving better outcomes in healthcare, and consolidation through COPAs should be carefully evaluated to prevent antitrust violations. The FTC voted unanimously to submit staff comments to the Indiana Department of Health.
Importance of the Issue
Union Health submitted a new COPA application in February to acquire Terre Haute Regional Hospital, citing the goal of enhancing healthcare services for the community. However, concerns over increased costs for patients and reduced wages for hospital employees have prompted the FTC to intervene and advocate against the merger.
With the deadline for state legislation prohibiting such mergers approaching, health system officials are facing opposition from Indiana Governor Mike Braun, signaling a shift in policy towards hospital monopolies. Several states have already repealed their COPA laws to promote competition and protect consumer interests.
Current Trends
The FTC’s recent comments echo its previous opposition to the proposed COPA in 2024, which led to the withdrawal of the application by Union Health and Terre Haute. Despite resubmitting the application in February, the concerns raised by the FTC remain unresolved, underscoring the need for a comprehensive review of the merger’s potential impact.
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