Nonprofit hospitals aren’t immune to FTC’s noncompete ban, lawyers, Fitch analysts say
The widespread ban on noncompete contracts finalized last week by the Federal Trade Commission (FTC) will throw a wrench into the staffing and finances of nonprofit hospitals, legal experts and Fit | Under the final rule, nonprofits would need to pass a case-by-case test of their organizations’ activities and net proceeds to be free of the FTC’s jurisdiction, legal experts say. More broadly, nonprofit hospitals—particularly small and rural facilities—are likely to face higher wages and potential operational disruption should the ban survive the courts, Fitch Ratings analysts warn.