FTC Charts Path to Restore Competition in Texas Anesthesia Markets in USAP Litigation

The Federal Trade Commission has reached an agreement in principle with U.S. Anesthesia Partners Inc. (USAP) to settle the litigation and restore competition for anesthesia services in Texas.

This preliminary settlement resolves charges, brought in 2023, alleging that USAP violated antitrust laws by engaging in a decade-long scheme to consolidate anesthesia services in Texas. The Commission's complaint alleged that USAP systemically bought up nearly every large anesthesia practice in Texas in a roll-up scheme to create a single dominant provider with the power to demand higher prices. USAP's multi-pronged anticompetitive strategy and resulting dominance cost Texans tens of millions of dollars more each year for anesthesia services than before USAP was created, the FTC's complaint alleged.

The substance of the agreement is confidential at present to facilitate the negotiations USAP must undertake to execute the settlement. But the terms of the settlement, if fully executed, will restore a competitive market structure and will be consistent with longstanding FTC settlement best practices. If USAP fails fully to execute the settlement, the FTC will return to district court to litigate these unlawful acquisitions.

The Commission vote authorizing staff to agree to the preliminary settlement was 2-0.

Note: The Commission has authorized Health Care Division staff to file for a stay while USAP works to implement the required relief to Texas consumers. Joint motions require approval by the District Court. Any stipulated final order resolving the litigation requires a Commission vote and approval by the District Court.