The FTC first sued USAP and its creator, private-equity firm Welsh, Carson, Anderson & Stowe, in September, alleging the two groups executed a multiyear anticompetitive scheme to consolidate anesthesiology practices in Texas, hike up the price of services provided to Texas patients and increase their own profits.
In May, a federal judge ruled that the FTC may proceed with the lawsuit, but Welsh, Carson, Anderson & Stowe may be dismissed from the case.
USAP has urged the court to reject the FTC’s claim that it has authority to pursue the lawsuit in federal court. USAP argued that the FTC’s lawsuit amounts to “government overreach,” and alleged the agency unlawfully bypassed an administrative process to pursue the lawsuit.
The FTC declined to comment, according to the report, and USAP said in a statement that it was confident the appeals court would find the case should be dismissed.
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