FTC Reaches Settlement with Private Equity Firm Over Antitrust Allegations in Texas

The Federal Trade Commission (FTC) announced on Friday that it has reached a settlement with Welsh, Carson, Anderson & Stowe and its affiliates over allegations that the private equity firm engaged in practices suppressing competition in the anesthesiology services market in Texas.

According to Reuters, the FTC claimed that Welsh Carson, a New York-based firm, utilized its portfolio company, U.S. Anesthesia Partners, to acquire numerous anesthesia practices in the state, consolidating them into a dominant entity capable of commanding higher prices.

The allegations echoed those in a lawsuit filed by the FTC last year in federal court against Welsh Carson and U.S. Anesthesia Partners. That case was dismissed by a judge in May 2023. Welsh Carson denied any wrongdoing in connection with the claims, criticizing the FTC’s approach in its Friday statement.

According to Reuters, the firm characterized the FTC’s actions as a last-minute attempt to revisit previously dismissed allegations and secure a settlement ahead of the second term of Republican President-elect Donald Trump.

Republican FTC Commissioner Andrew Ferguson, who has been nominated to lead the agency, described the case as “an ordinary application of the most elementary antitrust principles,” per Reuters.

As part of the settlement, Welsh Carson agreed to reduce its involvement with U.S. Anesthesia Partners. The firm will now be limited to a single seat on the company’s board and will require FTC approval for any future investments in anesthesia practices.

Source: Reuters