Indiana Department of Health approves hospital merger

(WXIN/WTTV): The Indiana Department of Health has approved a merger between Union Health and Terre Haute Regional Hospital.

Indiana Gov. Mike Braun announced on Sunday that the merger of the two hospitals on Sunday after IDOH approved a Certificate of Public Advantage (COPA) application for Union Health Hospital to acquire Terre Haute Regional Hospital. Braun said in his announcement the merger would drive down healthcare costs and improve access for Hoosiers.

This marks the latest development in a merger that IDOH began reviewing earlier this year as it commenced a 120-day review. Union and Terre Haute initially submitted its COPA application on Feb. 5.

Proponents of the merger, including the governor, have claimed that the merger will lead to lower prices while streamlining healthcare access to residents in Terre Haute and Vigo County.

“The result of this merger will be lower prices and more healthcare services available to residents of Terre Haute and Vigo County because of the strict operating terms and conditions that Union accepted,” said Gov. Braun. “This will bring long-term improvement to the community’s health outcomes.” 

However, critics of the merger cite possible price increases and stagnating wages for hospital staff. In March, the Federal Trade Commission urged IDOH to deny the proposed merger between Union Hospital, Inc. and Terre Haute Regional Hospital.

The FTC cited “anticompetitive harms”, contending that the proposed merger would prevent the combined hospitals from being held to an appropriate antitrust scrutiny while driving healthcare costs up and lowering wages for hospital workers.

The FTC referenced the original COPA application that the two hospitals submitted in November 2024, which was eventually withdrawn.

“Union Health and THRH submitted a second COPA application in February 2025. The resubmitted application presents little new information and the concerns the FTC raised in 2024 remain the same, the FTC’s latest comment letter states,” FTC said. “The deal continues to pose serious harm to competition and consumers through higher healthcare costs, lower quality, reduced innovation, reduced access to care, and depressed wages for hospital employees.”

According to Indiana statute, IDOH possesses the ability to approve or deny COPA applications while considering multiple factors. These include whether the proposed merger would improve healthcare outcomes, access or quality of the services provided versus any possible disadvantages.

The merger process will now officially begin as the two organizations will look to implement the agreement under IDOH oversight.