In a complaint filed Thursday in Texas federal court, the agency said Welsh Carson systematically bought up more than a dozen anesthesiology practices, becoming the dominant provider of the services in Texas, including in Houston and Dallas. The company then increased prices and secured promises from other providers that they would stay outside the market, the FTC alleged.
“Private equity firm Welsh Carson spearheaded a roll-up strategy and created USAP to buy out nearly every large anesthesiology practice in Texas,” said FTC Chair Lina Khan in a statement. “These tactics enabled USAP and Welsh Carson to raise prices for anesthesia services — raking in tens of millions of extra dollars for these executives at the expense of Texas patients and businesses.”
“You’ve basically taken the highest rate of all in one distinct market and then peanut butter spread that across the entire state of Texas,” a UnitedHealth executive wrote. Welsh Carson has $31 billion in assets, according to data compiled by Bloomberg, and says it primarily invests in healthcare and technology.
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