There are still mixed reactions as Indiana sees its first hospital merger approved under a new state oversight process.

Indiana officials have approved Union Health’s acquisition of Terre Haute Regional Hospital. According to an article published in Chief Healthcare Executive, Governor Mike Braun says the merger will lead to lower prices and expanded healthcare services under state oversight. However, the Federal Trade Commission has objected, warning the deal could reduce competition and eventually increase costs.

Meanwhile, a news release from Union Hospital says the Indiana Department of Health has granted a Certificate of Public Advantage, allowing the two systems to formally come together. Union Health CEO Steve Holman calls it “an exciting moment” that will expand services and improve outcomes while keeping care close to home. Board Chair Molly Callahan says both hospitals have long served the Wabash Valley, and combining resources strengthens that mission.

Union Health says it will now work to ensure a smooth transition for patients and staff.