Indiana legislators aim to restrict hospital mergers

Union Health is attempting to acquire Terre Haute Regional Hospital in Indiana, despite pushback from lawmakers and health officials. The nonprofit health system filed a new application for the merger after withdrawing its first bid last November due to opposition. The initial pushback came from comments received by the state's Department of Health, many of which opposed the merger. In the new application, which was submitted on February 5, Union Health highlights Terre Haute Regional's "declining position" and promises to keep both hospitals' emergency rooms and inpatient services operating. They also propose to limit price increases to the consumer price index for medical care. Indiana lawmakers are moving to restrict hospital mergers. A recent amendment to a bill now prohibits new mergers after February 15, but Union’s application was submitted before that date. The merger's fate now rests with Indiana's new governor, Mike Braun, who has expressed skepticism toward such deals. Economists warn that mergers often reduce competition and harm patient care. Critics argue that Union's proposed merger would raise healthcare costs and potentially lead to job losses. The Federal Trade Commission has also opposed the merger, stating that both hospitals are financially stable. Despite these challenges, Union Health insists that the merger will benefit the community by ensuring necessary services remain available. The final decision on the application is expected by June 21, and public comments can be submitted until March 23.