<- Back to Insights
April 24, 2024
Hospitals slam FTC's noncompete ban
Beckers Hospital Review
|
Contributed by: Colin Banas
Summary
The Federal Trade Commission (FTC) voted 3-2 to prohibit noncompete agreements, anticipating up to $194 billion in healthcare savings over ten years. Despite limitations in regulating nonprofit entities, many U.S. hospitals might still fall under this ruling, sparking controversy within the healthcare sector. Critics, including the Federation of American Hospitals, argue that the ban could exacerbate ongoing workforce shortages and create disparities between taxpaying and tax-exempt hospitals. The rule, which also expects to boost innovation and wages across various industries, has been met with opposition from the American Hospital Association and others, who predict it may be overturned by legal challenges. The noncompete ban reflects the FTC's broader ambition to stimulate economic dynamism and competition, despite concerns about its sweeping impact on the healthcare industry.
Explore Related Topics
