On September 21, 2023, the Federal Trade Commission (FTC) initiated a monopolization lawsuit against US Anesthesia Partners (USAP) and private equity firm Welsh, Carson, Anderson and Stowe (WC). This lawsuit, filed in the U.S. District Court for the Southern District of Texas, alleges unlawful monopolization of the anesthesiology market via roll-up acquisitions.
USAP is a major health care provider platform operating across various states in the U.S. Likewise, WC, acting as a principal investor, has maintained a long-standing investment relationship with USAP. The FTC lawsuit is perceived as a significant move in the regulator’s ongoing efforts to scrutinize market competition in the healthcare sector, particularly in cases involving private equity-backed roll-up acquisitions.
Given the breadth and depth of roll-up acquisitions within the anesthesiology markets, the case has drawn attention from legal professionals and health care industry stakeholders. They observe that the outcome of this case could significantly influence future antitrust litigation, particularly regarding the approach to roll-up acquisitions — a strategy that has been used frequently in recent years by health care providers and private equity firms.
As this complex litigation unfolds, the global legal community eagerly awaits further developments. Specifically, how the court will handle FTC’s allegations, the potential legal defenses by USAP and WC, and the prospective implications for antitrust laws and the wider healthcare market.
Further details on the FTC’s antitrust case against USAP and WC can be found in the original briefing here.