The FTC’s complaint outlines a three-pronged approach by USAP and Welsh Carson to monopolize the Texas anesthesiology market. First, they implemented a “roll-up” scheme, acquiring nearly every major anesthesia practice in the state to establish a single dominant entity capable of dictating higher prices. This resulted in significant price increases for anesthesia services provided by the same doctors post-acquisition. Second, USAP engaged in price-fixing agreements with remaining independent practices, further driving up costs. Finally, USAP strategically sidelined a major competitor, preventing them from operating within USAP’s territory through a market allocation agreement.
The FTC contends that USAP’s anticompetitive strategy has resulted in Texans paying tens of millions of dollars more annually for anesthesia services compared to pre-USAP market conditions. The complaint emphasizes that Welsh Carson intentionally targeted the fragmented Texas anesthesiology market, comprised of small, competing practices, recognizing an opportunity to profit by eliminating competition and leveraging higher prices. USAP’s current size and pricing significantly overshadow its competitors.
Beyond acquisitions, USAP allegedly maintained price-setting arrangements, enabling them to charge premium rates for services provided by independent groups at major hospitals in Dallas and Houston. This practice, coupled with the market allocation agreement, solidified USAP’s dominance and control over pricing. The FTC argues these actions constitute unlawful monopolization, acquisitions, conspiracy to monopolize, unfair competition, and unlawful restraints of trade, violating both the FTC Act and the Clayton Act.
The FTC seeks equitable relief to address the effects of USAP and Welsh Carson’s alleged anticompetitive behavior and prevent future occurrences. The Commission voted unanimously (3-0) to authorize the filing of a permanent injunction and other equitable relief in the U.S. District Court for the Southern District of Texas. This case highlights the FTC’s commitment to challenging anticompetitive practices, particularly within the healthcare sector, to protect consumers and ensure fair market competition. The final decision rests with the court.
