Nonprofit hospitals aren’t immune to FTC’s noncompete ban, lawyers, Fitch analysts warn
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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 Fitch Ratings analysts say. Those changes are expected despite the agency’s limited jurisdiction over entities that aren’t corporations, experts say. The rule, which forbids new noncompetes and has organizations stop enforcing existing noncompetes for all but senior executives, is slated to take effect 120 days after its April 30 publication in the Federal Register.
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