In recent weeks, Legislators and regulators have both contributed to the growing trend of increased scrutiny of private equity healthcare transactions and arrangements. Most recently, on February 12, 2025, California introduced Senate Bill 351, which can be found here, in its latest attempt to restrict the scope of authority a private equity firm may exercise with respect to its healthcare investments. In addition, on January 17, 2025, the FTC announced that it reached a settlement with private equity firmWelsh, Carson, Anderson & Stowe regarding litigation over the firm’s acquisition of anesthesia practices in Texas through portfolio company U.S. Anesthesia Partners (USAP). In the settlement, Welsh Carson agreed to freeze its current stake in USAP, seek FTC approval prior to any subsequent investment in any anesthesia business, and notify the FTC before acquiring any hospital-based physician practice. A summary of the settlement between the FTC and Welsh, Carson, Anderson & Stowe can be found here.
Submitted by Katten Muchin Rosenman.