Hospital merger in Terre Haute withdrawn as a result of monopoly issues
Two competing hospitals in Terre Haute, Indiana, withdrew their merger software shortly earlier than a state resolution deadline, amid rising opposition to medical monopolies.
Union Well being and Terre Haute Regional Hospital, the one acute care suppliers in Vigo County, deliberate to merge below a state provision referred to as the Certificates of Public Benefit (COPA) regulation.
The choice to withdraw was made 9 days earlier than the December 4 deadline for state regulators to approve the merger.
In an announcement, Union Well being mentioned: “Recognizing that the COPA course of is a extremely advanced, modern method to bettering entry to and high quality of healthcare for space residents, we imagine it’s best to shut the present software to withdraw.”
The hospital plans to resubmit a revised software, working intently with Indiana regulators, to focus on potential advantages reminiscent of improved entry and high quality of care.
Neither Union Well being nor HCA Healthcare, the mother or father firm of Terre Haute Regional Hospital, supplied particulars on what influenced their resolution to withdraw the applying.
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Economist Christopher Garmon of the College of Missouri-Kansas Metropolis mentioned, “There could possibly be quite a few the explanation why they withdrew the applying with the expressed intention of refiling.
“Given the standing of the applying, it’s unlikely that the deal is heading for approval.
“Regardless, I feel it’s clear that the state was not able to undertake COPA on phrases much like earlier COPAs.”
The event is a part of a broader pattern of challenges to hospital mergers below COPA legal guidelines, which exist in Indiana and 18 different U.S. states.
These legal guidelines present safety from Federal Commerce Fee (FTC) oversight, with states usually agreeing to observe hospital efficiency and restrict value will increase.
Whereas proponents of COPA legal guidelines imagine that state oversight can counter monopoly hurt, well being economists and the FTC have argued that it isn’t an alternative choice to competitors and that these mergers might hurt sufferers.
