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FTC ban on noncompetes may not apply to nonprofit hospitals: Report

Posted On: Jan. 23, 2023 9:37 AM CST

A large swath of the health care sector – nonprofit hospitals, which make up half of all hospitals in the United States – may  be exempt from the federal government’s proposal to ban noncompete arrangements in employment contracts, Healthcare Dive reports. The health care sector frequently relies on restrictive covenants to retain physicians and the patients they treat, the report says. Legal experts say that a plain reading of the proposal would suggest that nonprofit organizations are exempt.