An Indiana health system, Union Health, has withdrawn its Certificate of Public Advantage (COPA) application to acquire Terre Haute Regional Hospital after facing criticism from federal regulators. The deal, which aimed to improve access and quality of care, was questioned by regulators over concerns that it could raise prices and worsen health outcomes for patients. The COPA mechanism allows mergers to go through that might otherwise violate antitrust law, and Indiana is one of 19 states that allow such arrangements.
The Federal Trade Commission (FTC) expressed concerns over the merger, stating that it could lead to increased healthcare costs, reduced access to quality care, and lower wages for hospital workers. The FTC argued against the use of COPAs, emphasizing that they could create hospital monopolies.
The withdrawal of the COPA application was seen as a positive step by the FTC, as it reflects a willingness to address the concerns raised by the public. Residents, researchers, and doctors had also expressed concerns over the potential negative impacts of the deal, including increased commercial prices and insurance premiums, and job losses.
Union and Terre Haute Regional have until July 1, 2026, to resubmit their COPA application. It remains to be seen whether they will revise their proposal to address the concerns raised by regulators and the public.
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