Hospitals are cheering a judge's decision to block a Federal Trade Commission's rule banning noncompete agreements, The Hill reported. The FTC voted to pass the rule in April, but on Tuesday a federal judge in Texas blocked it, calling it "arbitrary and capricious" and saying the agency had "exceeded its statutory authority" in making it.
The rule, set to go into effect Sept. 4, would have made it easier for workers, including doctors, to quit and go work for a competitor. Hospitals traditionally use noncompete clauses to keep physicians from leaving their jobs, arguing it's necessary to keep talent and maintain patient care.
Chip Kahn, president and CEO of the Federation of American Hospitals, said: "We have been clear from the start that this rule would threaten patient access to care by making it more difficult for hospitals to recruit and retain physicians and invest in training and technology."
But physicians groups are unhappy with the ruling, arguing that noncompetes are detrimental to both doctors and patients. Steven P. Furr, president of the American Academy of Family Physicians said, "Noncompetes harm family physicians and their patients by jeopardizing long-term patient-physician relationships and creating an uneven playing field for physicians."
He added: "The AAFP will continue to support the FTC's mission to eliminate noncompetes in health care that prioritize the interests of organizations over those of patients and their physicians."
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