Conor Reidy Discusses Oppositions to Indiana Hospital Merger with Law360

Winston & Strawn partner Conor Reidy was quoted in a Law360 article discussing opposition from Indiana’s top law enforcement official to the merger between two hospitals. While the hospitals argue that the deal will prevent reductions in services, both state and federal regulators have cautioned that the merger would create a regional hospital monopoly, allowing cost hikes for patients and driving down staff wages in a mostly rural region already struggling to attract experienced doctors and nurses. In a letter to the state Department of Health, Indian Attorney General Todd Rokita said the hospital should be denied a Certificate of Public Advantage because the potential efficiencies of such a deal are outweighed by the potential downsides, including “unchecked” cost hikes.

The opposition from the attorney general could spell the end of a four-year attempt by the hospitals to secure approval under the state’s public advantage law, which gives immunity from federal antitrust laws for hospital deals that show “clear evidence” that a hospital combination will improve the health outcomes and access to the communities currently served by the hospitals.

Conor said federal officials and academics opposing the proposed deal could influence the state health departments, but local regulators likely have a better understanding of the affected communities and how consolidation would play out.

“The Indiana attorney general’s position is likely to carry more weight with the Indiana Department of Health,” he said.

Read the full article.