Today, the Federal Trade Commission announced a settlement with private equity firm Welsh, Carson, Anderson, and Stowe and its affiliates (collectively referred to as ‘Welsh Carson’) that resolves a potential second administrative antitrust case against Welsh Carson.
According to the complaint, the commission alleged Welsh Carson, through its portfolio company U.S. Anesthesia Partners, engaged in anticompetitive acquisitions to suppress competition and drive up prices for anesthesiology services across Texas.
Under a proposed consent order resolving the FTC’s concerns, Welsh Carson will be required to limit its involvement with USAP and notify the FTC of specified future acquisitions and investments in anaesthesia and other hospital-based physician practices.
The settlement follows an initial September 2023 federal court complaint in which the Commission alleged that USAP and Welsh Carson, which created USAP in 2012, engaged in a roll-up scheme by systemically buying up nearly every large anaesthesia practice in Texas to create a single dominant provider with the power to demand higher prices.
In May 2024, the district court dismissed Welsh Carson from the FTC’s federal challenge on procedural grounds, finding that the FTC lacked authority to bring the case against Welsh Carson in federal court because the complaint did not allege that Welsh Carson was currently violating the law, as required under Section 13(b) of the FTC Act.
The commission’s antitrust case against USAP continues to proceed in federal court.
The commission’s latest action underscores that the common corporate tactic of seeking dismissal of a federal case on Section 13(b) grounds may delay—but will not deny—the FTC’s efforts to challenge anticompetitive conduct. If necessary, the commission will bring suit in administrative court to protect consumers from anticompetitive conduct. The settlement here avoids the commission bringing such an administrative action.
