New Federal Trade Commission Rule Promises to End Noncompete Agreements, But Legal Challenges Loom: What it Means for the Health Care Industry”.

The Federal Trade Commission has recently passed a rule that bans noncompete agreements across all sectors of the economy. This change is expected to lead to more new businesses and higher earnings for workers, as almost one in five Americans are currently subject to these agreements. However, it is likely that the ban will face legal challenges and may not take effect for years, if ever.

The contentious nature of the rule means that it will likely be tied up in litigation before it can be fully enforced. One important aspect of the noncompete ban is that it does not apply to nonprofit companies, such as most hospitals, which are exempt from FTC jurisdiction. This means that the ban may not have as broad of an impact on the health care industry as originally thought.

Despite this limitation, the noncompete ban could still have a significant impact on the health care industry by eliminating barriers to competition and innovation. It remains to be seen how effective the rule will be in practice, but its passage marks a step towards a more open and competitive market for consumers.