On September 21, 2023, the Federal Trade Commission (FTC) has officially announced an action against U.S. Anesthesia Partners, Inc. (USAP) and the private equity group Welsh, Carson, Anderson & Stowe (WCAS). The allegation is primarily focused on a series of relatively discreet acquisitions of anesthesia practices, which, in the FTC’s view, has allowed the defendants to amass an anticompetitively significant share of the anesthesia market in Texas.
This action from the FTC evidences a noteworthy shift in the agency’s focus and shows its increasing scrutiny over the ways private equity firms acquire practices in healthcare, particularly when they are aggregating practices in a single geographic area or healthcare specialty. FTC’s intent is to prevent entities, including private equity-backed platforms, from achieving market dominance through potentially anticompetitive acquisitions that might otherwise avoid FTC attention due to their smaller size or seemingly localized geographic impact.
USAP and WCAS appear to be the first defendants in the healthcare sector to face such allegations; however, this case may well be an indication of broader enforcement actions to come. As such, it’s crucial that legal professionals working both within corporations and big law firms take note of this action and carefully consider the antitrust implications when advising on or conducting a series of acquisitions within a specific market or industry.
This situation presents an opportunity for legal professionals to reassess their understanding of FTC regulations alongside their private equity or healthcare clients’ acquisition strategies. Any series of smaller acquisitions, when viewed as a whole, may draw the FTC’s attention and could potentially trigger enforcement action.
For a detailed account of the FTC’s announcement, you can read JD Supra’s full report here.