Indiana AG says Terre Haute hospital consolidation will drive up costs
INDIANAPOLIS, Ind. (WTWO/WAWV) — Indiana's Attorney General says he is strongly opposed to the merger of two Wabash Valley hospitals.
Union Health signed an agreement to acquire Terre Haute Regional Hospital in September 2023. The state review process is now underway, and the Indiana Department of Health will host a town hall on May 1, 2025, at the Ivy Tech campus in Terre Haute.
Attorney General Todd Rokita is encouraging residents to attend that meeting and said in an April 17th letter that he is against the proposal.
'We all understand that hospitals face distinct challenges, but consolidation at the expense of free-market competition is not the way to address those challenges in this case,' Attorney General Rokita said. 'In fact, the creation of a regional monopoly would impose a negative impact on Hoosiers in the area seeking quality health care and affordable costs.'
He added that the acquisition would 'lead to the monopolization of Terre Haute hospital systems that (would) be unchecked in raising healthcare costs, stifling innovation, suppressing wages, and reducing access to care for the citizens of Terre Haute and the surrounding community.'
Rokita added that during the acquisition review hospital officials have pointed to the success of mergers in Tennessee and Virginia. But in those cases the merger involved massive hospital systems in urban areas.
'The solution for other states working to integrate a hospital system with more than 20 hospitals is not a fair comparison or likely to work for a rural, two-hospital town,' Rokita wrote.
If the acquisition is stopped by the state, Rokita predicted that Terre Haute Regional Hospital would be able to find another buyer.
'The solution is competition between strong competitors that fosters efficiency, ingenuity, and technological advancement,' Attorney General Rokita wrote.
Union Health responded by noting that the Wabash Valley is dealing with 'unique challenges that require strategic solutions to improve health care.'
'Today, Regional Hospital leaves many beds empty due to a staffing shortage, while Union Health is at capacity and needs more bed space to provide the care our community needs,' Union officials wrote. 'Without the approval of this merger, HCA will seriously consider ending services or closing Regional Hospital, which would further exacerbate the already serious capacity issues Union is facing.'
Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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