Merger Showdown: Indiana Eyes Ban on Hospital Monopoly Deals, but One Battle Remains
Union Health is making a new bid to Indiana regulators to buy its rival hospital in Terre Haute as the door looks poised to close on such deals.
2025-03-17 13:13:22 - VI News Staff
The nonprofit health system is trying to leverage an existing state law to acquire Terre Haute Regional Hospital, the only other acute care hospital in Vigo County. After withdrawing its initial application in November amid pushback, Union has shifted its pitch to emphasize what it describes as Regional’s “declining position” while offering more concrete promises, such as limits on price increases.
Union submitted its new application on Feb. 5 as Indiana lawmakers were attempting to nix such mergers in their state. Lawmakers then watered down a bill that threatened to forbid Union’s deal altogether, with the amended legislation now barring mergers sought after Feb. 15, leaving an opening for Union. That means the proposed merger will next face a showdown with the administration of Indiana’s new governor, which has signaled opposition to such deals.
Indiana is among the latest states reconsidering Certificate of Public Advantage laws that green-light hospital monopolies. This year, Tennessee lawmakers introduced a bill to restructure state oversight of these mergers after an attempt last year to repeal its COPA law. In 2023, Maine repealed its COPA law, joining Minnesota, Montana, North Carolina and North Dakota.
“I would hope that they are reconsidering the laws because of the research on the long-run harms of COPAs,” said Christopher Garmon, a University of Missouri-Kansas City economist who has studied COPA mergers.