Information on Federal Trade Commission v. USAP

The FTC's intended outcome threatens to disrupt and restrict patients' equitable access to quality anesthesia care in Texas and will negatively impact the Texas hospitals and health systems that provide care in underserved communities. The FTC's civil complaint is based on flawed legal theories and a lack of medical understanding about anesthesia, our patient-oriented business model, and our care for patients in Texas. 

We are a team of frontline clinicians who provide outstanding anesthesia care to over 2 million patients each year. Over the last decade, our collaborative partnerships with facilities and health systems have led to equitable access to care for patients and improved outcomes, with positive impacts on the overall costs of care to the hospital systems, health plans, and patients we serve.

We will continue to vigorously defend ourselves against the FTC's misguided allegations.

FAQs

  • Why was the FTC investigating USAP?

    The FTC has been increasingly focused on healthcare providers, so their investigation of USAP is part of a broader strategy we have seen from the FTC towards healthcare. USAP believes the FTC's civil complaint is based on flawed legal theories and a lack of understanding about anesthesia, our business model, and our care for patients in Texas. We plan to vigorously defend ourselves against the FTC's misguided allegations, and we are confident that we will prevail.

  • Why did USAP file a motion to dismiss?

    USAP filed a motion to dismiss the complaint because, among other things, we believed the FTC inaccurately represented the anesthesia market in Texas and failed to properly allege that USAP has monopoly power by charging more than a competitive price. USAP's motion was not granted, however that does not change our belief that the FTC's claims are without merit. We look forward to demonstrating this as the case proceeds and are confident in our position. In the meantime, we will continue to focus on caring for the patients we serve in Texas and other communities across the country.

  • Why is the FTC concerned about USAP's market power in Texas?

    The FTC misguidedly claims that USAP's acquisitions in Texas gave us outsized market power, which impacted prices to health plans. In actuality, no anesthesia practice has "power" over health plans—many of which dwarf USAP and any physician group in size, revenue and profits. Contrary to the FTC's allegations, USAP's collaborative partnerships with facilities and health systems have led to equitable access to care for patients and improved outcomes, with positive impacts on the overall costs of care to the health systems, health plans and patients we serve. In fact, USAP is in-network with most major health plans in the communities where we operate.

  • Will this litigation impact USAP's ability to provide anesthesia care?

    No. While we fight the FTC's overreach and misguided allegations, we will continue to provide high-quality anesthesia care in the communities we proudly serve. Our outstanding quality and clinical care will not change and are a reflection of our clinician-centric structure and culture that drives the best outcomes for our patients, the best service for our health systems and is the best home for our clinicians.

  • Does USAP's size in certain markets enable it to raise prices?

    No. Anesthesia prices vary depending on the type and amount of anesthesia used, along with duration of use. For this reason, the fees and prices charged for anesthesia care also range. Prices are negotiated with health plans and are based on a patient's general health, the type of procedure and services provided, the location of the procedure (e.g., hospital, clinic, or doctor's office), as well as the state where they reside and the patient's insurance status. In Texas, USAP's commercial prices—which are negotiated with and agreed to by each health plan—have increased modestly over the years, and when adjusting for inflation, have remained essentially flat.

    The reimbursements we receive for care are in line with industry standards and reflect the complex nature of treating the most critically ill patients. The evidence of that can be seen in the fact that USAP is in-network with most major health plans in the communities where we operate. In addition, our dedicated Patient Advocacy Teams help patients navigate insurance, eligibility, and clinical questions.

  • Will this impact the employment of clinicians and employees in USAP's Texas practices?

    No. The litigation does not change our business. At this time, we are vigorously defending ourselves against the FTC's allegations and will keep you informed as the case progresses. While we work to prevail in court, we continue to serve our patients in Texas and across the country.

  • Is USAP's business model under threat?

    No. USAP is physician-owned and governed, and is the leading, single-specialty anesthesia practice in the country. During this litigation, we will continue to remain focused on caring for the patients we serve, our communities and our health systems.

  • What does this mean for USAP partners and patients?

    This does not change our top priority: providing high-quality anesthesia care through our commitment to excellence, safety, and innovation. We remain focused on the collaborative partnerships we build with facilities and health systems that lead to equitable access to care for patients and improved outcomes. These produce positive impacts on the overall costs of care to the health systems, health plans and patients we serve.

  • Does this change how USAP works with payers?

    No. The litigation does not change our approach to partnership, nor does it change our commitment to be properly reimbursed for the high-quality care we provide to health plan members in a variety of settings. We continually offer value-based reimbursement models to all health plans, which hold us accountable for the care we deliver and the positive outcomes we help create.