FTC Lawsuit Against Anesthesiology Group Warns Private Equity About Healthcare Competition Practices
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Recent FTC lawsuit against major anesthesiology group is a warning to private equity firms about anti-competitive practices in healthcare.
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FTC alleges Texas anesthesiology group USAP, owned by PE firm Welsh Carson, engaged in price-fixing and market allocation after buying up competitors.
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USAP now controls 60% of Texas market, and prices doubled after acquisitions, according to FTC.
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Critics say private equity's focus on short-term profits leads acquired practices to boost prices and cut staff.
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FTC wants to strengthen merger guidelines and reporting requirements to better monitor roll-up deals that could reduce competition.