The Federal Trade Commission (FTC) has a proposed regulation to ban non-compete clauses in some employment contracts, including those that prevent doctors from working for nearby competitors. ACP has commented on the proposed rule, and we are also urging our members to submit their own comments on the FTC proposed rule on non-compete clauses. A sample letter has been provided for your convenience that can be submitted electronically through our grassroots platform.

Background: On January 5, the FTC announced a proposed regulation on non-compete clauses, noting that they are a “widespread and often exploitative practice that suppresses wages, hampers innovation, and blocks entrepreneurs from starting new businesses.” A survey in 2007 found that approximately 45% of primary care physicians had signed non-compete agreements. These non-compete clauses have been documented to prevent physicians from practicing medicine in their communities when they want to change jobs, thus potentially limiting patients’ access to their regular source of care. ACP in its comment letter to the FTC noted the impact that these non-compete clauses have on primary care physicians and their patients.

ACP is concerned that the protections provided to employed physicians under the rule may be limited, as it is currently unclear how it will impact nonprofit health care organizations, and that a large number of physicians are employed by nonprofit health care organizations. Our grassroots comment letter focuses on this concern and calls on the FTC to include nonprofit health care organizations in the final rule. 

Action Requested: Please submit your comments to the FTC via the “Take Action” link below. A sample letter has been provided for your convenience that can be submitted electronically. The deadline to submit comments on the proposed regulation is April 19.