US FTC employees opposes Union Well being and THRH merger in Indiana
Federal Commerce Fee (FTC) officers have filed a remark with the Indiana Division of Well being and Human Companies recommending {that a} merger software between Union Well being and Terre Haute Regional Hospital (THRH) be denied.
The committee agreed to ahead the employees feedback to the Indiana Division of Well being.
The commentary explains that the merger, underneath a certificates of public profit (COPA), might doubtlessly result in increased prices and poorer well being outcomes, in addition to decrease wage progress for hospital employees in Indiana.
In Vigo County, Indiana, the proposed merger would have a big affect. The mixed entity would management roughly 74% of all hospital look after sufferers who’re commercially insured.
The businesses utilized for COPA in September final 12 months. Further info was offered afterwards.
You may count on public feedback till September 6.
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COPAs are state authorities regulatory regimes designed to exchange competitors amongst well being care suppliers, a observe the FTC has traditionally opposed.
The FTC states that COPAs typically result in hospital consolidation and fewer competitors within the well being care market.
The commentary emphasises that the proposed acquisition of THRH by Union Well being poses a big threat of aggressive hurt, with out enough proof that the advantages outweigh the potential disadvantages.
In keeping with the FTC, the Indiana COPA Act was enacted to permit hospital mergers that “might enhance the effectivity, high quality, and accessibility of well being care.”
Regardless of this, the group believes that the proposed merger of Union Well being and THRH would lead to an anti-competitive consolidation that’s opposite to the intent of the Act.
The FTC additionally questions whether or not COPA's laws would successfully stop anticompetitive results within the Terre Haute space.
Moreover, the monetary evaluation of Union Well being and THRH exhibits that each hospitals are financially secure and might function independently with no merger.
A labor evaluation additionally discovered that the merger might restrict wage progress for registered nurses, largely attributable to better consolidation of employers.
The FTC has seen a surge in COPA legal guidelines and has been assessing their affect on well being care costs, high quality, entry, and innovation since 2017.
Earlier research have proven that COPAs can result in increased business costs for hospital admissions and a lower within the high quality of care.
