AMGA Urges FTC to Defer to States for Healthcare Noncompete Agreements

Alexandria, VA – AMGA today emphasized that states, rather than federal regulators, are best positioned to regulate noncompete agreements in healthcare, which help support coordinated care delivery and protect critical healthcare investments.

In comments submitted to the Federal Trade Commission (FTC) in response to its Request for Information on employer noncompete agreements, AMGA outlined how multispecialty medical groups and integrated delivery systems rely on carefully tailored noncompete agreements to maintain stable care teams that coordinate treatment for patients, particularly those with chronic conditions. AMGA stressed these agreements help protect substantial investments in physician recruitment and training while preserving continuity of care.

“With our nation facing an unprecedented healthcare workforce crisis, it’s essential federal regulators recognize the unique economics of healthcare delivery,” said AMGA President and CEO Jerry Penso, MD, MBA. “Reasonable, narrowly tailored noncompete agreements strengthen local healthcare labor markets by enabling the coordinated care that improves outcomes and reduces costs.”

AMGA’s key recommendation calls on the FTC to defer to state legislatures and courts as the primary regulators of noncompete agreements in healthcare. States have decades of experience evaluating the reasonableness of these provisions and are uniquely equipped to assess local market dynamics, workforce availability, and patient access challenges.

The comments detail how noncompete agreements protect significant investments in physician recruitment—ranging from $300,000 to $500,000 per primary care physician—and support integrated care models where primary care physicians and specialists collaborate through unified electronic health records to manage chronic conditions. AMGA also addressed how appropriately structured agreements can help preserve healthcare access in rural and underserved areas by maintaining local workforce stability.

The letter is available on the AMGA website.

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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.