Union Health Faces Obstacles in Terre Haute Merger Bid
Deal News | May 23, 2025 | EIN
Union Health and Terre Haute Regional Hospital have been attempting to merge, encountering significant opposition from federal regulators and the Indiana attorney general, who cite concerns about reduced competition, higher costs, and diminished quality of care. In response to these objections, HCA Healthcare, the owner of Terre Haute Regional, emphasized the possibility of closing the hospital if the merger is not approved by state officials. The two hospitals are the only ones in Indiana's Vigo County, and their merger faces intense scrutiny over its potential impact on prices, service quality, and local employment. Notably, Union Health pledges a $117 million investment to enhance healthcare access, despite projections of increased costs and job cuts by critics like Yale economist Zack Cooper. The merger awaits a decision from the Indiana Department of Health on a Certificate of Public Advantage. The FTC continues to resist hospital mergers using state certification as a means to bypass antitrust evaluation.
Sectors
- Healthcare
- Regulatory and Legal
Geography
- United States – The article takes place in the United States, specifically involving hospital systems in Indiana.
- Indiana – The merger, regulatory objections, and possible consequences are specifically situated in the state of Indiana.
Industry
- Healthcare – The article discusses a merger between two hospital systems in Indiana, highlighting issues related to healthcare competition, pricing, and service quality.
- Regulatory and Legal – Regulatory challenges and legal objections from the FTC and the Indiana attorney general play a significant role in the merger discussions.
Financials
- $117 million – Pledged investment by Union Health to expand access to care and hire new providers.
- 10% to 30% – Projected increase in commercial healthcare prices as forecasted by economist Zack Cooper.
- 5% – Projected drop in nurse salaries following the merger.
- 500 – Number of jobs predicted to be lost in the region due to the merger.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Union Health | Bidder | Company | A nonprofit health system aiming to merge with Terre Haute Regional Hospital. |
| Terre Haute Regional Hospital | Target Company | Company | A 278-bed hospital owned by HCA Healthcare, involved in the proposed merger with Union Health. |
| HCA Healthcare | Selling Company | Company | Owner of Terre Haute Regional Hospital, the selling company in the merger proposal. |
| Federal Trade Commission (FTC) | Regulator | Government | Objected to the merger on the grounds of reduced competition and higher costs. |
| Indiana Attorney General | Regulator | Government | Opposed to the merger, suggesting a better-suited acquirer would be non-competitive in the market. |
| Indiana Department of Health | Regulator | Government | Evaluating the merger application and the decision on the Certificate of Public Advantage. |
| Zack Cooper | Economist | Person | Yale economist who predicts price increases and other negative effects from the merger. |