The Federal Trade Commission (FTC) announced a preliminary settlement agreement with U.S. Anesthesia Partners Inc. (USAP) to resolve antitrust litigation concerning the company’s consolidation of anesthesia services in Texas. The settlement comes after the FTC’s 2023 complaint alleged USAP engaged in an unlawful scheme over ten years to acquire nearly every large anesthesia practice in the state, leading to diminished competition and higher prices.
The Commission’s complaint charged that USAP’s acquisition strategy created a dominant provider in Texas anesthesia markets, enabling it to demand significantly higher fees. According to the FTC, Texans have been forced to pay tens of millions of dollars more annually for anesthesia services due to USAP’s roll-up of competitors.
While the specific terms of the settlement remain confidential to facilitate ongoing negotiations, the FTC stated that the agreement, if finalized, will restore competition consistent with established enforcement practices. The Commission authorized staff to approve the preliminary settlement by a 2-0 vote.
The settlement includes provisions for USAP to implement relief measures benefiting Texas consumers. During this process, Health Care Division staff may seek a court stay to allow USAP time to comply. Final approval of any stipulated order requires both FTC Commission vote and District Court sanction. Should USAP fail to comply, the FTC anticipates returning to court to litigate the case.
Why it matters
This case highlights the FTC’s efforts to combat anticompetitive roll-ups in health care, which can reduce provider options and increase costs for patients. Anesthesia services are a critical and often costly component of surgical care, making competition essential to keeping prices fair in Texas.
The litigation and settlement underscore the broader regulatory focus on private equity acquisitions in health care markets, which have prompted concerns about decreased market competition and consumer harm.
Background
The FTC filed its initial complaint against USAP in 2023, alleging that the company pursued a multi-pronged strategy to consolidate the Texas anesthesia market through acquisitions. This detailed complaint illustrated how USAP’s actions limited rivals and concentrated market power.
The agency’s enforcement is part of its broader mandate to preserve competition and protect consumers from unfair methods of competition, particularly in critical sectors such as health care.
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Sources
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