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AMGA opposes FTC proposal to ban non-compete agreements

Press releases may be edited for formatting or style | March 21, 2023 Business Affairs
Alexandria, VA – AMGA today opposed the Federal Trade Commission (FTC) proposal to ban the use of non-compete agreements. Multispecialty medical groups and integrated delivery systems use these agreements to support their ability to offer patients a team-based approach to their care. As employers, AMGA members rely in part on non-compete agreements to build strong, sustainable care teams that work together to coordinate care for their patients. These care teams emphasize the importance of the doctor-patient relationship, which reasonable non-compete agreements help support.

“Patients benefit the most from a model that is built around care coordination and a carefully designed team-based environment,” said AMGA President and CEO Jerry Penso, MD, MBA. “Patient access to their team of providers is important for care continuity, especially for those patients with chronic diseases. The FTC should prioritize the stability of doctor-patient relationships and not move forward with a plan that could disrupt patients’ care.”

AMGA is concerned this rule would preempt state laws and regulations, which are based on the specific needs of local healthcare markets. The FTC rule would impose a national standard, which will not account for the variations in the healthcare landscape. Carefully constructed non-compete agreements that reflect local market conditions treat physicians fairly while also protecting the economic stability of healthcare provider organizations.

About AMGA
AMGA(Opens in a new window) is a trade association leading the transformation of healthcare in America. Representing multispecialty medical groups and integrated systems of care, we advocate, educate, innovate, and empower our members to deliver the next level of high performance health. AMGA is the national voice promoting awareness of our members’ recognized excellence in the delivery of coordinated, high-quality, high-value care. More than 175,000 physicians practice in our member organizations, delivering care to one in three Americans.

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