Union Health withdraws application for hospital acquisition
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Terre Haute-based Union Health has withdrawn its certificate of public advantage, or COPA, application related to its planned acquisition of Terre Haute Regional Hospital, the health system said Monday.
However, Union Health said the two parties will continue to work toward completing the deal, though an estimated timeline was not given.
Union Health had filed the COPA application with the Indiana Department of Health, which drew opposition from the Federal Trade Commission in September.
Plans for the acquisition were first announced in September 2023. At the time, both Union Health and Terre Haute Regional said the 278-bed hospital at 3901 South 7th Street would “continue operations with no intention of interruptions throughout the transition.”
Financial terms of the acquisition were not disclosed.
The Indiana General Assembly passed Senate Enrolled Act 246 in 2021, which gave the Indiana Department of Health the authority to issue a COPA for certain hospital mergers. Vigo County is currently the only Indiana county that meets the criteria for hospitals to receive a COPA.
A certificate would require the regulation of a merged hospital system by the department in place of regulation by the FTC through antitrust laws, our partners at The Indiana Lawyer reported last month.
The FTC issued a letter in opposition of Union Health’s COPA application, stating the health system would have a combined share of nearly 74% of all commercially insured inpatient hospital services.
“FTC staff submits this comment to express our concern that the proposed merger presents substantial risk of serious competitive and consumer harm in the form of higher healthcare costs, lower quality, reduced innovation, reduced access to care, and depressed wages for hospital employees,” the commission said.
Union Health said in a statement Monday that it felt it was best to withdraw its COPA application “to allow time for Union Health and Terre Haute Regional to continue to work with IDOH, to ensure the benefits, including improved access, quality, prevention and early intervention, are outlined in the new application.”
The health system said it plans to continue to review its planned acquisition of Terre Haute Regional, and the process will “continue to align with the principles of accountability and thoroughness as outlined by the COPA.”
The FTC did not immediately respond to a request for comment from Inside INdiana Business on the withdrawal of Union Health’s application.