Many physicians and nurses are pleased with the Federal Trade Commission’s new rule banning noncompete agreements in employment contracts. However, the rule may not protect those working for nonprofit hospitals, which employ a large number of medical professionals. The rule prohibits contract clauses preventing employees from working for competitors and aims to lower healthcare costs. Nonprofit hospitals express concerns over bidding wars for physicians and potential cost increases. Despite some opposition and legal challenges, physician and nursing groups hope the rule inspires hospitals to stop using noncompetes and encourages more states to prohibit them. The rule is set to take effect in September.
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Health Worker for a Nonprofit? The New Ban on Noncompete Contracts May Not Help You
