PEPC Statement on FTC Non-Compete Clause Rulemaking

The Federal Trade Commission (FTC) demonstrated its commitment to addressing anti-competitive business practices across our nation’s workforce, including in the health care industry, through its recently released Notice of Proposed Rulemaking. Like many other contractual clauses, non-competes may be used in ways that ultimately benefit or undermine the patient-physician relationship. Non-compete clauses may be appropriately used by health care providers to retain staff they have worked hard to recruit and train. However, they may also be used inappropriately to stifle competition among health care providers, ultimately leading to higher costs and lower quality. We look forward to working with the FTC to strike an appropriate balance across competing interests.