The fate of noncompete agreements has been in flux recently as changes to the FTC remain possible under a new presidential administration and the clauses remain the subject of lawsuits in healthcare.
Here is where three ASC leaders told Becker's they stand on noncompete agreements:
Editor's note: Responses have been lightly edited for length and clarity.
Brian Bizub. CEO of Raleigh (N.C.) Orthopaedic Clinic. As we move into 2025, ASC leaders should consider revisiting their approach to noncompete agreements. Rather than relying on traditional, restrictive noncompetes, adopting more flexible alternatives — such as limited noncompetes, non-solicitation clauses, and performance-based incentive — can protect business interests and financial stability, while promoting physician autonomy, improving workforce satisfaction, and complying with evolving legal standards and regulations. Adopting other alternatives to restrictive noncompetes can assist ASCs to stay competitive.
Andrew Lovewell. CEO of Columbia (Mo.) Orthopedic Group. This is an area where ASC leaders are divided. From my perspective, in some markets, noncompetes are essential and should be enforced. However, attracting and retaining top talent may mean that the noncompetes have to be limited in some geographic areas. Some people see noncompetes as essential to protect business interests and ensure that the investments in staff, equipment, and technology are recognized. However, others find them to be intrusive and limit career growth. With everything in the complex healthcare space, there will always be a division on some topics — this is one that I see remaining as a divisive topic for years to come. In my opinion, the most important thing ASC leaders can do is focus on creating a balance between business protection and creating an environment of growth and collaboration.
Bruce Feldman. Administrator of Eastern Orange Ambulatory Surgery Center in Cornwall, N.Y. I feel noncompetes prevent competition amongst ASCs, especially within the same geographic area. Competition helps ASCs to help distinguish themselves when it comes to clinical outcomes. None should be eliminated. Physicians should be able to bring their patients to those facilities which they deem to provide the best level of care and have the best outcomes for the specific type of procedures they perform. To me, having a noncompete is a form of restraint of trade.