FTC’s Khan Targets Private Equity ‘Roll-Up’ Tactic in Court
- Agency says Welsh Carson monopolized Texas anesthesiologists
- US Anesthesia Partners calls FTC complaint ‘misguided’
The FTC alleged Welsh Carson systematically bought more than a dozen anesthesiology practices.
Photographer: Andrew Harrer/BloombergThis article is for subscribers only.
Federal Trade Commission Chair Lina Khan is going after a common acquisition strategy for private equity firms, putting the industry on notice with a new lawsuit that US regulators are scrutinizing “roll-up” deals involving small companies that compete in local markets.
The FTC sued US Anesthesia Partners Inc. and its private equity partner Welsh Carson Anderson & Stowe LP on Thursday, alleging they engaged in a scheme to monopolize the market for anesthesiologists in Texas using the “roll-up” strategy. It’s the first time the agency has targeted such deals, which usually are small enough to avoid antitrust review.