Great Falls Hospital Merger

Montana's COPA Law

Under Montana law, health care facilities that wish to merge must apply for a certificate of public advantage (COPA) if they wish to be immune from federal antitrust laws. The Department of Justice is responsible for reviewing proposed mergers and either granting or denying the merger and supervising the merged entity in accordance with Section 50-4-603 of the Montana Code Annotated.

The department reviews three factors - health care costs, access to health care services and quality of health care services - in its consideration of proposed mergers. If a proposed merger results in lower health care costs, improved access to health care or greater quality of care than would occur without a merger, the department must issue a certificate. If the criteria are not met, the department must deny the merger application.

The department is also authorized to impose specific conditions on a COPA to guard against any potential abuse of power resulting from reduced competition and to ensure the objectives of the merger are met.

Termination Date – Through Senate Bill 323 (PDF), the 2007 Legislature amended the law by providing that:

• a certificate of public advantage must terminate 10 years from the date it was issued, and
• for two years immediately following the termination of a COPA, the prior certificate holder must file an annual report with the department.

These amendments were applied retroactively to the Great Falls Hospital merger, thereby terminating the 1996 COPA on July 9, 2006.

History

In October 1995, Great Falls' Montana Deaconess Medical Center and Columbus Hospital proposed a merger and in July 1996, the Department of Justice issued the COPA. The order allowing the merger and significant documents related to the post-merger supervision are available below.

• June 2007 Letter Concerning 2003-2005 Progress Report – Findings on Review of 2003-2005 Annual Progress Reports (PDF)
• October 2006 Ten-Year COPA Review Decision (PDF)
• June 2006 Transcript of Public Hearing Re Ten-Year COPA Review for Benefis Healthcare (PDF)
• April 2006 Proposal of Benefis Healthcare to Repeal COPA Upon Ten-Year Anniversary (PDF)
• 2003 Preliminary Progress Report (PDF)
• 2003 Decision on Petition for Modification of COPA (PDF 1.3MB)
• 2002 Amendment to Petition for Modification (PDF 1.2MB)
• 2002 Petition for Modification of the COPA (PDF 2.7MB)
• 2002 Preliminary Progress Report (PDF)
• 2001 Progress Report (PDF)
• 2000 Progress Report (PDF)
• 1999 Progress Report (PDF)
• Independent Accountant's Report for Fiscal Year 1998 (PDF)
• 1999 Decision on Requested Merger Modifications
• 1998 Progress Report (PDF)
• 1996 Merger Decision
  • Summary
  • Full Decision (PDF) - Amended Findings of Fact, Conclusions of Law, and Certificate of Public Advantage (COPA)
  • Economists' Report