FTC’s Ban of Non-Compete Agreements Undermines Team-Based Healthcare
AMGA today strenuously objected to the Federal Trade Commission (FTC) decision to ban the use of non-compete agreements. The FTC’s decision to unilaterally eliminate existing non-compete agreements and ban their future use will have far-reaching negative implications for patients, clinicians, and AMGA members.
AMGA Objects to Sweeping Rule That Upends Healthcare Labor Markets
Alexandria, VA – AMGA today strenuously objected to the Federal Trade Commission (FTC) decision to ban the use of non-compete agreements. The FTC’s decision to unilaterally eliminate existing non-compete agreements and ban their future use will have far-reaching negative implications for patients, clinicians, and AMGA members. The FTC ignored any possible downsides to implementing a national standard based on a misunderstanding of how localized healthcare labor markets function. AMGA also disagreed with the FTC’s belief the rule will result in lower spending on physician and clinical services.
“This rule will increase costs and limit investments in innovations and new technology,” said AMGA President and CEO Jerry Penso, MD, MBA. “Such a new business environment will limit the ability of AMGA members to address a number of important needs, such as social drivers of health.”
Carefully constructed non-compete agreements that reflect local market conditions treat physicians fairly while also protecting the economic stability of the group practice model. Multispecialty medical groups and integrated delivery systems use noncompete agreements to support their ability to offer patients a team-based approach to their care. As employers, AMGA members rely in part on non-compete agreements to build strong, sustainable care teams that work together to coordinate care for their patients. These care teams emphasize the importance of the doctor-patient relationship, which reasonable non-compete agreements help support. Non-compete agreements also allow AMGA members to plan future capital investments in cutting-edge technology, based on the reasoning that the highly-skilled care team will be in place.
“What medical group or facility is going to invest millions of dollars in a specialized surgical suite without reasonable assurances the care team will be there to use it?” Penso added.
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About AMGA
AMGA is a trade association leading the transformation of healthcare in America. Representing multispecialty medical groups and integrated systems of care, we advocate, educate, innovate, and empower our members to deliver the next level of high performance health. AMGA is the national voice promoting awareness of our members’ recognized excellence in the delivery of coordinated, high-quality, high-value care. More than 175,000 physicians practice in our member organizations, delivering care to one in three Americans.
AMGA represents medical groups and integrated systems of care. Its diverse membership includes multispecialty medical groups, integrated delivery systems, accountable care organizations, and other entities committed to improving healthcare outcomes. AMGA advocates for the formation of innovative, clinically integrated systems of care that advance population health, enhance patient experience, and reduce healthcare costs. For more information, please visit www.amga.org.