Indiana state officials are reviewing the planned merger between Union Health and Terre Haute Regional Hospital, but critics are voicing concerns about the potential negative effects on the local community.
Opponents, including healthcare experts and local advocates, argue that the merger could lead to higher healthcare prices and job losses, particularly in a region where these are the only two hospitals.
The Federal Trade Commission FTC has also expressed its opposition, citing potential price hikes and lower care quality due to the elimination of competition between the two hospitals. Experts like Zack Cooper, an associate professor at Yale, argue that consolidating the hospitals could lead to monopolistic practices, with fewer choices for residents and higher medical costs.
Cooper and other critics have warned that merging these two hospitals, which currently compete in close proximity, would harm consumers and reduce healthcare options in the area.
On the other hand, Union Health’s CEO, Steve Holman, defends the merger, stating that it is essential for improving healthcare in the Wabash Valley. Holman emphasizes that combining resources would allow for better investment in services, enhanced care, and overall improved health outcomes, while maintaining cost efficiency. He also points to the region’s current public health challenges, including a low life expectancy in Vigo County, as evidence that change is needed.
The FTC has raised concerns about the merger’s lack of scrutiny, particularly under a certificate of public advantage COPA, which reduces regulatory oversight. Federal regulators argue that the merger is not necessary since both hospitals are financially stable and could continue to operate without consolidation.
A decision from the Indiana Department of Health is expected soon as they continue their review of the merger proposal.