From Becker's:
The Federal Trade Commission voted to implement a sweeping noncompete ban that would have seismic effects on the healthcare industry and the U.S. economy more broadly. But questions remain around which nonprofit hospitals and other providers may be affected by the ban and how far the FTC's jurisdiction reaches under its final rule.
The American Hospital Association has argued against the rule and pushed the FTC to limit the reach of its authority specifically for the healthcare industry.
Pointing to hospitals registered under section 501(c) of the Internal Revenue Code claiming tax-exempt status as nonprofits, the AHA argued that these entities are outside the FTC's jurisdiction — a claim the commission categorically refutes.
On the other hand, some for-profit stakeholders argued that healthcare should be exempt altogether from the noncompete ban. Their argument is that healthcare is so different from other industries and it would not be fair to prohibit for-profit entities from noncompetes while allowing them for at least certain IRS tax-exempt nonprofits.
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