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Terre Haute-based Union Health has filed a new certificate of public advantage, or COPA, application related to its planned acquisition of Terre Haute Regional Hospital.
In a news release issued Tuesday, Union Health said “the purpose of the merger is to improve the health and wellness of ALL Wabash Valley citizens” and listed several anticipated benefits.
Our partners at WTWO-TV confirmed with the Indiana Department of Health that the application was received and that the IDOH is conducting its initial review.
Union Health’s previous COPA application was withdrawn in November.
At the time, Union Health said it felt it was best to withdraw “to allow time for Union Health and Terre Haute Regional to continue to work with IDOH, to ensure the benefits, including improved access, quality, prevention and early intervention, are outlined in the new application.”
Plans for the acquisition were first announced in September 2023.
In September 2024, the Federal Trade Commission urged the IDOH to deny the application and that the COPA could shield the proposed merger from antitrust scrutiny, leading to a deal that would likely impose higher costs and could lead to worse healthcare outcomes for Indiana patients, as well as lower wage growth for hospital workers.
Vigo County is currently the only Indiana county that meets the criteria for hospitals to receive a COPA.
Our partners at the Indiana Lawyer reported last year that the FTC’S distaste for COPAs has been well established, with the FTC releasing a policy paper in 2022 that argued research showed that these certificates are “often detrimental for patient costs, patient care, and healthcare worker wages.”
Robert Greising, a partner at Krieg DeVault LLP who does not represent either hospital, told Indiana Lawyer that FTC opposition to any merger is influential.
“It makes the hill steeper to climb for companies,” Greising said.
Additionally, Sen. Ed Charbonneau, a key architect of the 2021 law that allowed COPAs, now wants to repeal it.
“I didn’t think I was doing 100% the right thing last time,” the Republican, who chairs the Senate health committee, said of co-authoring Indiana’s 2021 COPA law. “I do think I am this time.”
In 2021, Union Health leaders were instrumental in the passage of Indiana’s COPA law. They supplied draft language for the bill, according to legislative testimony, and Union Health CEO Steve Holman testified before lawmakers that the merger would improve Vigo County’s poor public health rankings.
Charbonneau’s bill would prevent such deals and make Indiana the sixth state to repeal its COPA law. It was referred to the Health and Provider Services Committee on Jan. 8.
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