New ban on noncompetes could have big impact on health care

AXIOS April 24, 2024
Tina Reed

The Federal Trade Commission’s vote on Tuesday to ban noncompete agreements could be a big deal for the health care workforce.

Why it matters: While the agreements are often thought of as a concern for senior executives and lower-income workers, sizable shares of doctors and nurses face employer restrictions on switching jobs.

Driving the news: In a 3-2 vote, the FTC approved a final rule that would soon make it illegal for employers to enforce noncompetes for the vast majority of workers.

• Between 37% and 45% of physicians are affected by noncompetes, according to the American Medical Association.
• The FTC projected the rule could reduce health care costs by up to $194 billion in the next decade. It has...

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