Union Health responds to attorney general's merger opposition

Yahoo

09-05-2025

Union Hospital on Thursday shared its response to a letter from Indiana Attorney General Todd Rokita in which the state officer opposed the proposed merger between Union Hospital and Terre Haute Regional Hospital.
Union argues the merger is a critical next step to secure health care for the Wabash Valley for years to come. It says state approval — known as a Certificate of Public Advantage, or COPA — 'will help preserve and broaden local access to care, protect cost efficiency and build a healthier, more resilient future by leveraging combined resources.'
Union says its response addresses the questions and claims made in the attorney general's letter. It also says it reinforces how the 45 commitments outlined in the COPA application are designed specifically to achieve Union Hospital's vision for a healthier and more resilient community.
'Since the late nineteenth century, Union Hospital and Regional Hospital have treated patients from the region each and every day,' Steve Holman, president and CEO of Union, said in an emailed statement.
'Union Hospital and Regional Hospital have a demonstrated history of being committed to doing what is best for the health and well-being of the people that call the Wabash Valley home,' Holman said. 'We believe the COPA is the next best step in our journey to care for the people of this community.'
Union Hospital outlined its key points as to why the merger '… is the only way to change and enhance the trajectory of the future of health care in the area.'
To wit:
* The proposed merger will maintain and increase access to care. It says under the merger, Union Hospital is committed to investing at least $117 million in various services and community health programs and recruiting 30+ new primary and specialty care providers.
* Union is committed to protecting cost efficiency. While the attorney general expresses concern that Union Hospital may raise its prices after the seven-year pricing limitation period ends, Union says little will change with respect to hospital prices in the community. Health insurance plans determine pricing for services for 98.4% of its patients, and the hospital is not free to set prices at any level. Federal government programs will continue to set rates for Union Hospital and commercial and Medicare Advantage plans will continue to robustly negotiate rates with Union Hospital as they do today.
* Union acknowledges that concerns may exist with a reduction in competition, but these concerns are being addressed with specific commitments designed to protect the community. And without the merger, the community will be met with significant job losses, fewer services and worse health outcomes.
Union's complete statement regard the attorney general's letter is available with this article on the Tribune-Star's website, www.tribstar.com.
The attorney general's letter also is available with this story at www.tribstar.com.
To view the merger application pending before the state, visit bit.ly/3YX7vgv.
Union also invites the public to find more information on its COPA application and its and commitments at union.health/healthier-together.
Union Hospital and Terre Haute Regional Hospital are seeking merger via state regulation rather than via Federal Trade Commission approval.
Indiana is one of about 20 states that allow such a process. However, legislation (Senate Enrolled Act 119) signed this week by Gov. Mike Braun effectively closes down that method of approval in Indiana, which is by state issuance of a Certificate of Public Advantage, or COPA.
Barring the COPA law being resurrected by future government action in Indianapolis, it appears the Union/Regional application will be the one and only COPA application to proceed in the Hoosier State.
That application is now before the Indiana Department of Health, which must rule by mid-August.
Rokita, the state's chief legal officer, argued the proposed merger presents monopoly concerns and could drive up healthcare costs and reduce access.
Union maintains that without the merger, Regional's owners — HCA Healthcare — may well close the hospital on the south side of Terre Haute, costing the area 500 to 600 healthcare jobs and leaving Union Health hard pressed to replace all of the healthcare access lost.