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How the FTC's noncompete ban could affect Epic

April 30, 2024
Becker's Hospital Review
Contributed by: Bill Russell
The Federal Trade Commission's (FTC) recent decision to ban noncompete agreements poses significant changes for the nation's largest Electronic Health Records (EHR) vendor, Epic Systems. This rule, under scrutiny in court, has been challenged by former employees and health systems affected by Epic's comprehensive noncompete clauses. These clauses have historically restricted career advancement for individuals in healthcare and technology sectors and limited health systems' ability to hire ex-Epic talent, involving around 4,500 competitors and customers, including nine health systems. While Epic announced it is evaluating the implications of the FTC's ban and stresses the importance of protecting high-tech intellectual property, the decision could potentially end their restrictive noncompete agreements, altering the landscape of employment and competition within the health technology domain.
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