FTC Targets Healthcare Industry With Renewed Enforcement Of Non-Compete Agreements

The Federal Trade Commission (FTC) has shifted its focus towards targeted enforcement of non-compete agreements in the healthcare industry. After a nationwide ban on employee non-compete agreements was struck down in August 2024, the FTC has begun issuing warning letters to large healthcare employers and staffing firms.

These letters, issued on September 10, urge companies to review their employment agreements, including non-compete agreements and other restrictive covenants, for compliance with applicable law. The FTC warns that such restrictions may have “particularly harmful effects” in healthcare markets, limiting patient choice.

This renewed enforcement push aligns with recent state-level reforms tightening non-compete rules for healthcare professionals. Eight additional states – Arkansas, Louisiana, Maryland, Pennsylvania, Utah, Texas, Indiana, and Wyoming – have enacted new restrictions on non-competes since early 2025, joining several states that already had such restrictions in place.

According to The National Law Review, employers should treat this moment as a recalibration, not a reprieve. With the FTC’s shift to case-specific enforcement and the patchwork of state laws concerning healthcare provider non-competes, employers must ensure compliance with applicable laws. FTC Chairman Ferguson emphasized the administration’s priority to “deliver transparent, competitive, and fair healthcare markets.