The Federal Trade Commission (FTC) has issued a statement following Union Health's decision to delay its acquisition of Terre Haute Regional Hospital and withdraw its Certificate of Public Advantage (COPA) application with the Indiana Department of Health. Hannah Garden-Monheit, Director of the FTC’s Office of Policy Planning, commented on this development.
"This is good news for patients and healthcare workers in Indiana’s Wabash Valley region," said Garden-Monheit. She expressed concerns that the proposed merger could "raise healthcare costs, reduce access to quality care, and depress wages for hospital workers." The FTC hopes the Indiana Department of Health will ultimately deny the COPA.
In September, the bipartisan Commission voted unanimously to authorize FTC staff to submit a comment urging denial of the COPA application. The regulatory regime could potentially shield the merger from antitrust scrutiny. Union Health stated it withdrew its application to allow more time to outline benefits they claim would result from their proposed merger with Terre Haute Regional Hospital.
In Vigo County, Indiana, where effects would be most significant, a merged entity would control nearly 74% of all commercially insured inpatient hospital services. During a public comment period ending September 6, 2024, over 360 unique comments were received by the Indiana Department of Health expressing concern about the merger.
Concerns raised include eliminating alternative options for healthcare services in Terre Haute/Vigo County/Wabash Valley region and negative experiences with Union Health regarding quality and pricing. There are fears about losing competition between Union Health and Terre Haute Regional Hospital impacting prices and service quality. Concerns also extend to increased patient travel times and impacts on hospital employees' wages and morale.
The FTC continues its policy project documenting COPAs' impact on prices, quality, access, and innovation in healthcare services. Past studies have shown increases in commercial inpatient prices and declines in care quality due to COPAs.
The Federal Trade Commission remains committed to promoting competition in healthcare by preventing anticompetitive hospital mergers. They develop policy initiatives affecting competition and consumers while maintaining transparency through social media updates and alerts.
