TERRE HAUTE, Ind. — Locals on this metropolis of 58,000 are used to having to wait at railroad crossings for one of many dozens of every day cargo trains to move by means of.
But a proposed merger between the 2 hospitals on both aspect of the town may exacerbate the problem in emergencies if the hospitals shut down some providers, resembling trauma care, at one web site, which the proposal cites as a chance. Tom High, fireplace chief of a close-by township, stated some first responders can be compelled to move vital sufferers farther, risking longer delays, in the event that they turn out to be what locals name “railroaded” by a passing prepare.
That’s simply one of many fears on this group as Indiana officers overview whether or not to permit Union Hospital, licensed as a 341-bed facility, to buy the county’s solely different acute care hospital, the 278-bed Terre Haute Regional Hospital. The proposed deal additionally raises considerations about lowered tax income, worsening care, and better costs.
Within the subsequent few months, the Indiana Department of Health should discover “clear evidence” that the proposed merger would enhance well being outcomes, entry, and the standard of care. Those advantages should “outweigh any potential disadvantages.”
As the nation’s well being care trade has turn out to be extra concentrated amid a gradual clip of mergers in latest many years, it’s widespread for one massive system to dominate a market. In this case, the deal can be Indiana’s first merger beneath the COPA legislation, quick for Certificate of Public Advantage, that the state enacted in 2021. Such legal guidelines permit offers that the Federal Trade Commission in any other case considers unlawful as a result of they scale back competitors and sometimes create monopolies. To mitigate the damaging results of a monopoly, the merged hospitals usually comply with situations imposed by state regulators.
Union Hospital leaders stated it’s time to maneuver “beyond competition” for the sake of the area, which has struggled to maintain jobs and lift life expectancy charges. Hospital spokesperson Neil Garrison stated the merger would in the end enhance care, improve entry, and minimize prices. Leaders of Regional Hospital, which is owned by for-profit chain HCA Healthcare, didn’t reply to questions concerning the proposal.
One uncommon implication arises, although: If the merger is authorized, the encircling county would lose tax income from one in all its bigger companies. Union Hospital, which as a nonprofit is exempt from paying taxes, can be buying tax-paying Terre Haute Regional, which paid roughly $508,000 in county taxes for 2023, stated Vigo County Auditor Jim Bramble. That’s the equal of the beginning salaries of about 9 sheriff’s deputies, per the county’s $83 million 2024 price range.
Garrison stated the hospital system is conscious of the tax implications for the county and is “exploring opportunities” to handle it.
Indiana regulators are weighing whether or not to permit rival hospitals to merge in Terre Haute. The deal can be Indiana’s first merger beneath the COPA legislation, quick for Certificate of Public Advantage, that the state enacted in 2021. (Samantha Liss/KFF Health News)
Meanwhile, Roland Kohr, previously a pathologist at Regional and a county coroner, frets about erasing competitors that compelled the hospitals so as to add providers or match the opposite. “The push to introduce new technologies, to recruit more physicians, that may not happen,” he stated.
The FTC has urged states to keep away from COPAs, pointing to research that discovered they “have resulted in significant price increases and contributed to declines in quality of care.” The fallout of comparable mergers has triggered federal sanctions in North Carolina and pushback from locals and legislators in Tennessee.
“A merged hospital system that faces little remaining competition after the merger usually has little incentive to follow through with its promises because patients have no other choice,” wrote Chris Garmon, a University of Missouri-Kansas City economist who has studied COPA mergers, in a warning to Indiana well being officers concerning the proposed merger.
Indiana already has among the many highest hospital prices in the country, in line with a research by the Rand Corp. analysis group. The Indiana Legislature spent the previous 12 months attempting to rein in prices. Gloria Sachdev, CEO of Indianapolis-based Employers’ Forum of Indiana, which pushed for these pricing limits on behalf of pissed off enterprise leaders, is frightened a Union-Regional merger would undo these positive aspects and lift costs additional.
Indiana’s COPA restricts how a lot the hospital may improve fees, Garrison stated.
Brandon Sakbun was elected final 12 months as Terre Haute’s youngest mayor. He believes a merger between the encircling county’s solely two acute care hospitals would profit residents by turning across the area’s “abysmal” public well being statistics. (Samantha Liss/KFF Health News)
Elsewhere, the most important COPA-created hospital system within the nation, Ballad Health, has reported that the time patients spend in its ERs in Virginia and Tennessee earlier than being hospitalized has greater than tripled, reaching practically 11 hours, within the six years since that monopoly of 20 hospitals shaped. Still, Tennessee has awarded Ballad top marks even when sure high quality metrics, together with its ER pace, fall beneath established benchmarks.
Ballad Health spokesperson Molly Luton stated the system’s efficiency has improved since these statistics have been gathered.
Last fall, some Tennesseans unsuccessfully urged a county board to name on the state to raised regulate the hospital system. This spring, state lawmakers refused to listen to testimony from residents who drove 5 hours to Nashville to testify for a bill that sought to limit future COPA mergers within the state — which in the end didn’t make it to a full vote.
Problems have additionally occurred when a COPA — and its oversight — are eliminated, leaving the merged hospital system as an “unregulated monopoly.” After North Carolina repealed its COPA in 2015, a subsidiary of HCA Healthcare purchased Mission Health, a COPA-created monopoly in Asheville, for $1.5 billion in 2019. The monopoly in Asheville remained however not one of the COPA’s situations utilized to the brand new proprietor.
Last 12 months, authorities inspectors discovered “deficiencies” at Mission Health that contributed to 4 affected person deaths and posed an “immediate jeopardy” to sufferers’ well being and security, in line with the 384-page federal inspection report. North Carolina Attorney General Joshua Stein sued HCA’s subsidiary final 12 months, alleging the ER was “significantly degraded,” and that the corporate failed to take care of sure vital providers, together with oncology care, a violation of a purchase order settlement Stein’s workplace negotiated with it as a result of the corporate acquired a nonprofit.
HCA stated it promptly addressed the problems and denied Stein’s allegations in its authorized response to the continuing lawsuit, arguing it has expanded providers since its buy. HCA additionally argued that the settlement is silent about sustaining the standard of care.
If Indiana regulators OK a merger between rival hospitals in Terre Haute, the encircling county would lose tax income when nonprofit Union Hospital, which is tax-exempt, acquires Terre Haute Regional, a for-profit hospital owned by Nashville-based HCA Healthcare. (Samantha Liss/KFF Health News)
Back in Indiana, Union Hospital laid the groundwork for its merger greater than three years in the past when its leaders offered the language for COPA legislation to then-state Sen. Jon Ford, a Republican in Terre Haute, believing he can be “the best champion for this proposal,” in line with legislative testimony from Taylor Hollenbeck, an RJL Solutions advisor on the merger. Ford, listed on the legislature’s web site because the invoice’s co-author, didn’t reply to requests for remark.
Union CEO Steve Holman testified within the invoice’s hearings that the county’s public well being rankings — with a mean life expectancy ranking 68th out of 92 counties within the state — needs to be a “call to action” to do one thing “big and bold.”
Terre Haute Mayor Brandon Sakbun agrees the merger may assist what he known as the county’s “abysmal” public well being statistics. Last 12 months, he was elected the town’s youngest mayor at age 27 on a promise to “turn Terre Haute around.” The area’s workforce has steadily declined and native leaders have pinned their hopes on a brand new on line casino and a producer of battery elements for electrical autos to reverse this development.
Sakbun’s father is an OB-GYN at Union, however the mayor stated that doesn’t coloration his opinion and that he helps the hospital merger regardless of the lack of the tax base. He believes it’s going to assist recruit medical and different professionals to an space that has struggled to draw high expertise.
“Do I believe that this is the one that bucks the research?” Sakbun stated. “I truthfully do.”
KFF Health News correspondent Brett Kelman contributed to this text.
Samantha Liss:
[email protected],
@samanthann
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