Indiana approves Terre Haute hospital merger despite competition concerns

Two Terre Haute hospitals that once competed for patients will soon operate as one system under a newly approved merger that state officials said will expand care and cap prices – although critics warn the deal will eliminate competition.

The Indiana Department of Health greenlit the closely watched merger between nonprofit Union Hospital and for-profit Terre Haute Regional, owned by HCA Healthcare, creating a single hospital system in the Wabash Valley, Gov. Mike Braun’s office announced on Sunday.

IDOH’s decision will allow the Vigo County hospitals to combine operations , but under state oversight.

It marks the first hospital merger approved under Indiana’s 2021 Certificate of Public Advantage law, which allows the state to regulate consolidated hospital systems in exchange for s