FTC Takes Legal Action Against Private-Equity Backed Anesthesia Group for Monopoly Practices
The Federal Trade Commission (FTC) has filed an antitrust lawsuit against U.S. Anesthesia Partners, a doctors' group backed by private equity firm Welsh, Carson, Anderson & Stowe, alleging that they engaged in consolidating doctors' groups in Texas to raise prices and increase profits. The suit targets a growing practice in the healthcare industry where private equity firms support companies in acquiring medical practices, allowing them to dominate local markets. The FTC considers this type of healthcare merger an enforcement priority and has stated that it will challenge consolidation schemes that undermine fair competition. Private equity firms argue that their businesses do not violate federal antitrust law.