Health Affairs August 30, 2024
On April 23, 2024, the Federal Trade Commission (FTC) issued a final rule to ban “noncompete clauses”—employment terms that prevent workers from competing with their employers after their employment ends. The rule bars such clauses across the US, effective September 4, 2024. It aims to increase worker freedom, promote competition, and spur innovation among employees, including physicians and other health care professionals.
Noncompete clauses (or “noncompetes” for short) may or may not be appropriate outside health care to protect trade secrets and proprietary knowledge. However, their use in health care presents unique challenges. Specifically, these clauses can disrupt continuity of patient care and create ethical and legal dilemmas through the possible prioritization of financial interests over patient care. In addition,...
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