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Will nonprofit hospitals get a pass on noncompetes?
No news was bigger last week than the Federal Trade Commission’s ban on noncompete agreements. If implemented, it would upend the competitive landscape between nonprofit and for-profit hospitals. That’s because the agency acknowledged — to the chagrin of at least one commissioner — that its power doesn’t extend to nonprofits, my colleague Tara Bannow reports.
However, there may be some wiggle room. The FTC estimated that “some portion” of the 58% of tax-exempt hospitals and the 19% of government hospitals likely fall under the final rule if they behave like for-profits (*blank stare*).
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