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April 23 (Reuters) - The U.S. Federal Trade Commission is settling its case against a private equity portfolio company it says was used to buy up anesthesiology practices and raise prices in Texas, according to court documents filed on Thursday.
WHY IT'S IMPORTANT
The FTC sued U.S. Anesthesia Partners (USAP) under the Biden administration in a major move by antitrust regulators to tackle private equity rollups, or purchases of many small businesses that allegedly decrease competition across an industry. Private equity firms will look closely at the terms of the settlement, which have not yet been made public.
CONTEXT
The FTC under President Donald Trump has made healthcare a priority, but at the same time has emphasized it is willing to settle on terms it finds adequate to remove any problems.
Private equity firm Welsh, Carson, Anderson & Stowe, which created USAP, was sued by the FTC, but settled with the agency after winning a bid to dismiss claims against it.
BY THE NUMBERS
The FTC said the rollup involved more than a dozen anesthesiology practices, 1,000 doctors, and 750 nurses.
THE RESPONSE
The FTC said the settlement is currently confidential "to facilitate the negotiations USAP must undertake," but that the deal would "restore a competitive market structure and will be consistent with longstanding FTC settlement best practices." If USAP fails to fully execute the settlement, the FTC will resume its case, the agency said.
USAP Chairman Scott Holliday said in a statement that while the company believes it has operated responsibly in Texas, "it was important to resolve this now so that USAP can remain laser-focused on providing high-quality anesthesia services."
(Reporting by Jody Godoy in New York; Editing by Rod Nickel and Paul Simao)
