The Indiana Department of Health has signed off on a merger between Union Hospital and Terre Haute Regional Hospital, a move Governor Mike Braun says will help reduce healthcare costs and expand services in west-central Indiana.
The two hospitals — Union, a nonprofit, and Terre Haute Regional, part of the HCA Healthcare system — filed a Certificate of Public Advantage (COPA) application with the state in February. The law allows hospital consolidations to proceed under state supervision when regulators determine the benefits to patients outweigh potential harm from reduced competition.
Under the approved agreement, the Department of Health will monitor pricing, access, and quality benchmarks to ensure the combined system delivers on promised improvements. The approval includes operating conditions designed to limit price increases and maintain service levels in the community.
Braun, who has made healthcare reform a central part of his administration’s agenda, said the merger fits into his broader effort to make care more affordable. “This will bring long-term improvement to the community’s health outcomes,” the governor said in a statement.
Indiana has some of the highest hospital prices in the country, and state officials have pressed health systems to rein in costs. The Terre Haute merger is one of the first major transactions to go through the COPA process since Braun took office.
Additional details on the merger and oversight plan are expected as Union and Terre Haute Regional begin implementing the agreement under state supervision.
