A federal court Monday dropped private equity firm Welsh, Carson, Anderson & Stowe from the Federal Trade Commission's lawsuit against U.S. Anesthesia Partners, in which the firm has ownership.
The private equity firm and one of the nation's largest anesthesia providers had asked the U.S. District Court for the Southern District of Texas to dismiss the lawsuit the FTC filed in September. While the court granted the private equity firm's request, Judge Kenneth Hoyt said the suit against the anesthesia provider will continue.
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The FTC's suit alleges that U.S. Anesthesia Partners is consolidating practices in Texas, inflating the cost of care for patients in the state. It further alleges the company made price-setting agreements with remaining independent providers, and forged a deal with an anonymous competitor to ensure it stayed out of the market.
Welsh, Carson, Anderson & Stowe was dismissed from the suit as the court said there was not evidence to show beyond a reasonable doubt that the firm was behind the alleged monopolization of practices in Texas.
The FTC had argued the firm was in on all of the anesthesia provider's transactions and business decisions, as it received profits from acquisitions. But Hoyt said receiving funds from the transactions was not enough to show the private equity firm violated antitrust law.
However, the court said U.S. Anesthesia Partners may have violated antitrust laws through noncompetitive practices and dismissing the provider from the suit at this point would be premature.