FTC Private Equity ‘Roll-up’ Lawsuit Greenlit by Texas Judge

Private equity-owned US Anesthesia Partners Inc. failed to escape the US Federal Trade Commission’s monopolization lawsuit, which targets the provider’s “roll-up” tactic of buying up smaller anesthesiology practices that compete in local markets.

A Texas federal judge on Monday denied USAP’s motion to dismiss the case, filed in the US District Court for the Southern District of Texas, but allowed the practice’s private equity owner to escape the suit. The ruling marks the first time a judge has weighed in on the FTC’s push to challenge such “roll-ups” in health care.

The FTC in September sued USAP and its private ...