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October 13, 2023

FTC Challenges Private Equity Rollup Strategy

On September 21, 2023, the Federal Trade Commission (FTC) sued U.S. Anesthesia Partners, one of the country’s largest anesthesia providers, and Welsh, Carson, Anderson & Stowe, its private equity owner, in the Southern District of Texas. The FTC’s complaint alleges that the two companies carried out an anticompetitive scheme to consolidate anesthesiology practices in Texas, boost their profits, and drive up the price of anesthesia services rendered to patients. In addition to the rollup scheme, the complaint also alleges that the companies executed price-setting agreements with independent practices and entered into an agreement with a competitor to keep it out of the market. 

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