Monopoly Allegations: FTC Targets Anesthesia Provider, Private Equity Firm In Lawsuit

The Federal Trade Commission (FTC) has filed a lawsuit against U.S. Anesthesia Partners, the largest anesthesiology provider in Texas, accusing the company of using its monopoly power to inflate prices for patients and boost its profits. 

According to the FTC, U.S. Anesthesia Partners' roots can be traced back to 2012 when New York-based private equity firm Welsh, Carson, Anderson & Stowe founded the company to pursue an aggressive consolidation strategy in Texas' fragmented anesthesiology provider market. 

The complaint contends that Welsh Carson aimed to establish U.S. Anesthesia Partners as the dominant player in Texas by acquiring numerous independent practices that previously competed against each other, effectively keeping prices lower.

The FTC alleges that USAP has achieved a monopoly in Houston and Dallas. The company's dominance, the complaint argues, has allowed it to raise prices significantly, resulting in substantial financial gains.

Furthermore, the FTC contends that USAP's influence is so substantial in Dallas and Houston that it can continue to raise prices while expanding its market share. Competitors find it challenging to enter these markets, and patients typically cannot forgo anesthesia services, leaving them vulnerable to price hikes.

Derek Schoppa, a practicing USAP physician in Texas and a USAP board member, said, "The FTC's intended outcome threatens to disrupt and restrict patients' equitable access to quality anesthesia care in Texas and will negatively impact the Texas hospitals and health systems that provide care in underserved communities. The FTC's civil complaint is based on flawed legal theories and a lack of medical understanding about anesthesia, our patient-oriented business model, and our level of care for patients in Texas."

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.