The Future of Healthcare Without Non-Compete Clauses

The healthcare industry felt a wave of relief when the Federal Trade Commission (FTC) declared its decision to abolish non-compete clauses for nearly all workers on April 23, 2024. Many physicians saw this ruling as a potential end to the binding contracts that have kept them trapped. There was finally a glimmer hope—the promise of a future where doctors could practice medicine without legal restraints shackling them to massive health system monopolies. 

But this relief was short-lived. The ruling quickly faced pushback, and in August 2024, U.S. District Judge Ada Brown ruled that the FTC lacked the power to enforce the ban. Now, we’re left with uncertainty surrounding the future of non-competes in healthcare. 

The Problem with Non-Competes in Healthcare 

Non-competes aren’t a new problem for physicians. For years, healthcare employers have put non-compete clauses in physician contracts to protect their interests, claiming to guard intellectual property or keep a competitive edge. But let’s be real—what these non-competes have mostly done is just imprison physicians. The American Medical Association estimates that anywhere from 37% to 45% of physicians are currently bound by non-competes, restricting their ability to change employers and undermining both their careers and their well-being. 

Take, for example, a physician I know in Charlotte, North Carolina. She’s been told that she can’t practice medicine within a 15-mile radius for 12 months after leaving her current health system. That’s 15 miles “as the crow flies,” not driving distance—meaning the restriction covers an enormous area in a metropolitan city like Charlotte. And she’s not alone. Another doctor in Grand Rapids, Michigan is bound by a 24-month non-compete within a 10-mile radius of his academic medical center practice. Although the radius may be smaller, in his geographic area, it’s career-limiting, especially over a two-year term.  

As another layer of perspective, one of the aforementioned health system’s websites boasts that they’re among the largest in the nation. What truly detrimental impact will a single physician leaving have on one of the nation’s largest health systems? The simple answer is precedent. Because a countless number of physicians would leave their oppressive health system work environments tomorrow if they weren’t legally stuck. When health systems all enforce their non-competes, it gives them a decisive upper hand and collectively prohibits a liberated physician labor force. 

These restrictive terms are draconian, preventing doctors from moving freely in their profession and—more importantly—limiting patient access to quality care. Because a doctor signed a contract with a non-compete clause, their patients lose access to their trusted physicians when those physicians move on. Therein lies the reason patients need to care about their physician’s work environment because it directly impacts their care; non-competes hurt healthcare from many angles. 

How Non-Competes Hurt Healthcare 

At Joyn Health, we’ve built our entire care model around amplifying the physicians who work here. We believe physicians should want to work with us because they align with our mission, not because we’ve trapped them in restrictive covenants. When physicians are bound by non-compete agreements, they can’t provide their best care, which has a negative impact for everyone—especially patients. 

For example, patients are directly impacted by physician burnout that can be exacerbated by restrictive physician contracts. Many primary care physicians are already feeling overwhelmed, with some managing ~2,200 patients while working in health systems that standardize 15-minute patient visits. But when they want to leave, they’re faced with either: A.) finding a temporary job outside of their restricted area and then finding a new one 12-24 months later back inside their home region, B.) completely taking a year off work while the non-compete expires, or C.) staying put and dealing with it. As a result, option “C” often prevails, and they find themselves stuck in work environments that lead to physician burnout. Physician burnout has very real consequences as it has been proven to increase the risk of patient safety incidents, result in poorer quality care, reduce patient satisfaction, and has even shown association with physician suicidality.

Historically, patients have not been challenged to seek care in places that deeply support their physician on personal and professional levels. Now that places like Joyn Health exist, the time for patients to also care for their physician has finally arrived.

For physicians currently bound by a non-compete or considering a contract, understanding your rights is vital. The American Medical Association offers insights into how these agreements can affect both your career and patient care, which you can explore here.

Our Vision for Physician Freedom 

The ongoing battle over non-competes continues to divide the healthcare industry, but at Joyn Health, we’re committed to forging a new path forward. We focus on empowering physicians to form lasting relationships with patients and practice medicine in a way that’s fulfilling. We prioritize partnerships that are grounded in mutual respect and trust—no more relying on outdated and restrictive practices. 

It’s time for the healthcare industry to focus on what really counts: enabling physicians to deliver the highest quality care without the weight of legal limitations.