Behavioral Health Business April 24, 2024
Behavioral health providers and investors must prepare to lose noncompete agreements as a tool in their arsenal following the Federal Trade Commission’s expected ban on the practice.
On April 23, the FTC’s five commissioners voted 3-2 to approve a final rule that forbids businesses from entering new noncompete agreements. It also makes existing noncompete agreements unenforceable, except in the case of senior executives. The rule is presently slated to go into effect in late August 2024. It proposed the rule in January 2023.
Legal challenges to the FTC’s final rule already in place. Those challenges may take years to resolve. If made effective, the final rule means behavioral health organizations must deal with the prospect of high-demand or hard-to-find...
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