The Federal Trade Commission’s new rule prohibiting for-profit companies from requiring noncompete clauses is currently in litigation. This delay provides an opportunity for the healthcare industry to craft a policy that works for patients, physicians, and provider organizations. Noncompete policies can disrupt patient-physician relationships and impact a physician’s ability to move and establish a practice elsewhere. A fair noncompete policy in healthcare should apply to all entities employing physicians, provide a buyout option for employees, have a time limit, and require provider organizations to allow communication with patients when a physician moves on. Such a policy would protect patients and physicians while acknowledging investments made by hospitals.
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Forging a Noncompete Policy That Works for Healthcare
