In a statement, the FTC said U.S. Anesthesia Partners—a portfolio company of Welsh, Carson, Anderson & Stowe—engaged in a “roll-up scheme” that involved the group purchasing “nearly every large anesthesia practice in Texas.” The agency said this led to it filing a lawsuit in 2023, with the goal of halting further market consolidation and undoing some of the damage.
Regulators maintain that the actions of U.S. Anesthesia Partners and Welsh Carson led to high prices for services in the state, as many areas effectively had no competition. The FTC said that once private equity moved into town, residents spent tens of thousands of dollars more every year for anesthesia services.
The consolidation was part of a decade-long concerted effort by U.S. Anesthesia Partners to dominate the market in the state, the FTC asserted in its lawsuit.
For now that complaint is on hold—assuming that the private equity group follows the roadmap to restore competition in certain areas of the state. The specifics on how that will happen were said to still be under negotiation; as such, the FTC added that the settlement terms were not being disclosed at this time.
“If U.S. Anesthesia Partners fails fully to execute the settlement, the FTC will return to district court to litigate these unlawful acquisitions,” the agency declared in its statement.
The terms of the settlement will still need to be approved by a U.S. District Court, once the final terms are reached.
‘Strong defenses’ against the allegations
In a statement of its own, the anesthesia chain maintained that it “operated responsibly in the state of Texas” and that it had “strong defenses to the FTC’s allegations.” However, U.S. Anesthesia Partners Physician and Board Chairman, Scott Holliday, DO, said it agreed to the settlement terms to avoid a costly court battle and to ensure that patient care was not disrupted.
“There are uncertainties in any legal proceeding and this exceptionally prolonged litigation has required enormous time, energy, and financial commitments,” Holliday stated. “In considering the best interests of our patients, clinicians, and hospital partnerships, we felt it was important to resolve this now so that U.S. Anesthesia Partners can remain laser focused on providing high-quality anesthesia services to our communities.”
U.S. Anesthesia Partners operates in nine states. However, the antitrust lawsuit only challenges its business operations in Texas.
The company said it will not admit to any wrongdoing, per the terms of the agreement with the FTC. It reiterated that the final conditions for the settlement are still being worked out.