Noncompetes have been a hot topic in healthcare, particularly since the Federal Trade Commission voted to ban noncompete clauses for most U.S. workers in April.
After the FTC announced its intent to ban noncompete clauses, four national organizations — the U.S. Chamber of Commerce, the Business Roundtable, the Texas Association of Business and the Longview Chamber of Commerce — sued the commission, arguing the FTC is overstepping its authority.
According to the American Medical Association, "unfair" noncompete clauses affect between 37% and 45% of physicians. The association calls noncompetes that limit physicians' opportunities for career advancement and restrict their ability to provide care in economically or socially marginalized communities "unfair" clauses.
Five states — California, Colorado, Oklahoma, Minnesota and North Dakota — have already banned noncompete clauses, and Connecticut, Indiana and Maryland have added limitations to noncompete policies such as time limits, wage requirements and buyout options.
Though the FTC's move drew backlash from certain business groups, physicians are not unified in their feelings toward the ban.
Ernest Braxton, MD, a spine and neurological surgery specialist at Vail-Summit Orthopaedics and Neurosurgery in Vail, Colo., expressed support for the ban.
"Banning noncompete clauses for physicians can significantly enhance community benefit. Such clauses restrict doctors from practicing within a certain radius of their former workplace for a specified period, hindering patients' access to healthcare services," Dr. Braxton told Becker's. "By eliminating these constraints, physicians can freely relocate to areas with underserved populations, improving medical access and quality of care."
On the other hand, Eric Anderson, MD, an interventional pain management physician in Lewisville, Texas, opposes the ban.
"My argument as a small business owner is that noncompetes serve companies by protecting our confidential internal information and encourages us to invest in our workforce, knowing our employees won't just pack up and leave," Dr. Anderson told Becker's.
If the FTC's noncompete ban withstands challenges in court, the commission estimates a $74 billion to $194 billion reduction in spending on physician services over the next 10 years.