FTC Lawsuit Isn't Expected to Slow Roll-Ups, Lawyers Say

Antitrust attorney Bill Katz was quoted in a Modern Healthcare article exploring the implications of a Federal Trade Commission (FTC) lawsuit involving a roll-up acquisition in the healthcare industry. Last month, the FTC sued one of the largest anesthesia providers in the U.S. and its private equity owner for allegedly combining physician practices in Texas to drive up prices for patients. The suit falls in line with the agency's increased scrutiny of healthcare mergers and acquisitions (M&A) for potential anticompetitive behavior. Mr. Katz, an experienced healthcare antitrust attorney, commented on whether the lawsuit will lead private equity firms to pause roll-up activity. He said that because the FTC's allegations do not focus solely on roll-ups, it's hard to tell whether the case will deter deals.

"It remains to be seen what effect the lawsuit has, because the allegations in the complaint go beyond just executing a roll-up strategy," he explained. "Certainly, the FTC would like PE firms to think twice before executing a roll-up strategy."

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