Locums CME #1: Why Primary Care Matters; A Locums Orthopedist Shares Her Story; Pros & Cons of Multiple Licenses; AMA’s Doc Recovery Plan & More

In This Issue

  1. AMA: To Defeat Doctor Shortage, Eliminate Obstacles to Primary Care
  2. What’s It Like to Be a Traveling Orthopedic Surgeon?
  3. Kentucky Locum Tenens Internist Admits to Role in $11M Medicare Fraud Scheme
  4. Is It Worth Having More Than One State’s License? Here Are Some Downsides
  5. AMA Pushes Physician ‘Recovery Plan’
  6. ARR Healthcare Acquires Enterprise Medical Recruiting
  7. Applying For Malpractice Insurance? How to Manage the Timing
  8. Socially Speaking: Preparing & Packing for Your Next Locums Assignment
  9. Dr. Peter G. Roode’s Have Scalpel—Will Travel Shares a Traveling Surgeon’s Inspiring Memoir
  10. Illinois Governor Signs Healthcare Staffing Regulations into Law
  11. US Senator Introduces Bill to Study Healthcare Staffing Business Practices During COVID
  12. FTC Looks to Restrict Use of Noncompete Agreements

To Defeat Doctor Shortage, Eliminate Obstacles to Primary Care

(Edited from AMA article by Andis Robeznieks, 6/1/2022)

Experts predict that the U.S. will be short between 17,800 and 48,000 primary care physicians by 2034. For many, those numbers may seem too abstract to fathom or the year too far away to ponder given more immediate concerns.

But one small-town doctor knows what those numbers mean to patients, because he’s starting to see it in the worry on their faces and the concern in their voices.

“I’ve been practicing here for 20-plus years and in the past month, I’ve had half a dozen inquiries from people asking: ‘Are you still planning on staying? Are you going to retire? Are you getting to that retirement age?’” said AMA member Noel Deep, MD, a past president of the Wisconsin Medical Society and an internist in Antigo, Wisconsin, a town of about 7,800 people in the northeast corner of the state.

Dr. Deep said that he and his wife, AMA member Lakshmi Deep, MD, are the only two internists in the area. “You can see that worry” in patients’ faces, he said, “They think that, if we are gone, then they won’t find any replacements at all. So that is a worry that plagues us.”

It is not an unreasonable concern for his community, where residents have already felt the impact of the physician shortage in rural America.

“We had one psychiatrist in the area who retired two years ago,” Dr. Deep said. “We have not been able to replace her.”

The nation faces a projected shortage of between 37,800 and 124,000 physicians within 12 years, according to The Complexities of Physician Supply and Demand: Projections From 2019 to 2034 (PDF), a report released by the Association of American Medical Colleges (AAMC).

When paired with the US Census data, the projections become particularly grim, according to another small-town physician and AMA member Sterling Ransone Jr., MD. He practices family medicine in Deltaville, Virginia, a community of about 2,000 residents.

“By 2032, the US population’s going to grow by about 10%, but those of us who are age 65 or older, we’re going to grow by about 47%,” said Dr. Ransone, president of the American Academy of Family Physicians (AAFP) and a member of the AMA Scope of Practice Partnership’s advisory committee.

“By that same year, 2032, probably about one-third of active physicians are going to be over age 65, so our physicians—we’re aging as well,” he added.

Why Primary Care Matters

Primary care’s value to a community was documented in a 2019 JAMA Internal Medicine study showing that “greater primary care physician supply was associated with lower mortality.”

“The largest decreases in cause-specific mortality associated with increased primary care physician density were for cardiovascular disease, cancer and respiratory tract disease, conditions with strong evidence of amenability to primary care management or with delayed mortality conditional on early screening through primary care,” the study says.

Despite these proven benefits, “per capita supply decreased between 2005 and 2015,” wrote the study’s authors.

This incongruity was also noted by researchers at the AAFP’s Robert Graham Center for Policy Studies in Family Medicine and Primary Care in its 2020 publication, The State of Primary Care in the United States: A Chartbook of Facts and Statistics (PDF).

“Despite renewed interest in strengthening primary care in the United States in recent years, there remains an inadequate understanding of what primary care is and does, insufficient investment in its infrastructure and growth, inadequacy in its workforce numbers and distribution, and inefficient coordination with other sectors,” the chartbook says.

The AMA House of Delegates has adopted a 25-point comprehensive policy that identified principles of, and action to, address the nation’s primary care labor force.

“Our patients require a sufficient, well-trained supply of primary care physicians…to meet the nation’s current and projected demand for health care services,” says the policy, which specifies family physicians, general internists and pediatricians, and ob-gyns as primary care doctors.

Other AMA policies supporting primary care include:

Drs. Deep and Ransone [were to] attend the 2022 AMA Annual Meeting in Chicago this month, Dr. Deep with the American College of Physicians’ delegation and Dr. Ransone in the AAFP delegation.

Excited for Primary Care, but Then Loans Come Due

Medical school graduates typically finish school with about $200,000 in medical-student-loan debt, which is often seen as an influential factor in specialty choice. This was detailed in an AMA letter (PDF) to Education Secretary Miguel Cardona, EdD, MS, last September.

“One study indicated that 31% of medical students intended to pursue primary care in their first year of medical school, but due to debt and expected income, decided to switch to a higher-paying specialty by the end of their fourth year,” wrote AMA Executive Vice President and CEO James L. Madara, MD.

According to AMA policy, “the costs of medical education should never be a barrier to the pursuit of a career in medicine nor to the decision to practice in a given specialty.”

The AMA fights to ease young doctors’ financial burdens that contribute to physician shortages in areas underserved by limited access to health care.

This includes supporting the bipartisan “Resident Education Deferred Interest Act” that would allow borrowers to qualify for interest-free deferment on student loans while serving in a medical or dental internship or residency program. Learn about how Congress can save resident physicians $12,000 a year.

“That’s the elephant in the room,” Dr. Deep said, referring to the medical-student-loan debt burdens. “Some programs will provide loan forgiveness if they work in a rural or underserved area, but you’d probably make a lot more in other specialties and be able to pay off that debt sooner.”

For his part, Dr. Ransone worries that the discussion of debt turning young doctors away from primary care could be a self-fulfilling prophecy.

“The debt issue definitely is one that’s out there, but I think that, to a certain extent, it’s overplayed,” Dr. Ransone said. “As a family medicine physician, I’m very well paid for my community. That said, I am paid significantly less than other specialties with similar lengths of training and expertise.

Read about other avenues for ‘shoring up’ primary care–like permanently authorizing the Teaching Health Center Graduate Medical Education (THCGME) program and expanding telehealth–here.

Sharing Primary Care’s Rewards

Dr. Deep said primary care physicians need to show medical students what is possible, and to make sure they understand there are great rewards that go beyond financial implications.

“If you have physicians who are able to portray the happiness in your profession, in your specialty, and if I say,—Hey, primary care is rewarding–look at this—the students will learn from us,” he said.

When the frustrations of paperwork or insurance company prior authorization becomes too much, Dr. Deep advises physicians to go into their offices, close the door, vent, and then “go back out with a smile on your face.

“As a physician, it is your honor and privilege to take care of vulnerable people in society—some of them at the most vulnerable times in their lives,” he said. “That’s the greatest honor that you can get: serving somebody else.

“People hold your hands, you hold their hands, and you help them through those difficult times in their lives,” Dr. Deep added. “Then they go home, and they tell their families about you. There are lots of times when the families come in and they just want to meet you. The kids come from out of town because Mom or Dad said great things about you. That’s the greatest reward as a primary care physician.”

All News Is Locums

What’s It Like to Be a Traveling Orthopedic Surgeon?

(Edited from MedPage Today interview by Sophie Putka, 4/29/2022)

Dr. Sonya Sloan is proud to be one among roughly 100 active female African American orthopedic surgeons across the US.

She decided to try locum tenens after experiencing the challenges of trying to start a family during residency and again in trying to get patient referrals and build a practice with the Houston medical group where she initially landed following residency.

“I still wanted a life, I still wanted to spend time with my child, I wanted more children. It became a lifestyle choice.

“My husband is a pastor. We have a very large church here in Houston–over 5,000 members–and I do a lot with that. I had a couple of nonprofits that I wanted more time with. Being a full-time orthopod was not going to allow me to do that,” Dr. Sloan said. “So locums was an option. They gave me the opportunity to do all things, if you will.”

However, when she started working on a locum tenens basis in 2006-2007, the practice option wasn’t well-accepted in the surgical field. People questioned whether working locums was “a real job,” as well as her seriousness about practicing orthopedic surgery.

“Fast forward 15 years and I’m pretty much a well-sought-out locum orthopod, as well as a speaker to medical students and residents about how to build the lifestyle you want through locum tenens,” Dr. Sloan said. “So, everything has worked out for my benefit, but it was really a choice of lifestyle for me.”

Travel and Uncertainty

Regarding the travel and ‘unpredictability’ of locum tenens practice, she explained that traveling physicians negotiate their own schedules. She describes how, early on, she took a 3-month job in the middle of Kansas in the winter, no less, and took her 15-month-old daughter Sarah along.

“When I went up there, one of the nurses had a nanny. That was great. She would even come to my hotel when I was on call so I didn’t have to wake Sarah up, when I had to go in in the middle of the night. I had to either take people with me, like a nanny a couple of times, or I found resources where I was.”

Considering their two demanding jobs and her traveling schedule, Dr. Sloan and her husband employed nannies most of the time throughout their daughter’s childhood.

“I choose now not to do more than a week or 10 days at a time, just so I’m not away from them too long, because their activities are so much right now. My daughter is about to be a senior next year in high school and I don’t want to miss any of those moments with contracts that I can avoid,” Dr. Sloan said. “But at the same time, it affords me the ability to go and work a week and make a month’s salary and I can be home the other 3 weeks out of the month.”

Read more about how Dr. Sloan balances her locum tenens medical career with other parts of her life here.

Kentucky Locum Tenens Internist Admits to Role in $11M Medicare Fraud Scheme

(Edited from MedPage Today article by Frankie Rowland, 6/27/2022)

A Kentucky-based locum tenens internist has agreed to pay $561,800 to resolve allegations that he knowingly violated the False Claims Act (FCA).

According to federal officials, between November 2017 and August 2020, Patrick C. Finney, MD, of Paducah, Ky, conspired and submitted more than $3 million in false claims to Medicare to obtain payment from the health insurance program.

Federal officials claim the submissions began after Finney was contracted by Barton Associates to provide telehealth services to the firm’s clients. Finney referred Medicare patients to be provided with durable medical equipment and genetic testing services when such services were not medically necessary.

Federal authorities allege the false claims were “tainted by kickbacks,” yielding profit for Finney. Officials further allege that Finney did not treat Medicare beneficiaries; had no physician-patient relationship with the beneficiaries, often not speaking with them, and knew the equipment and services he prescribed weren’t medically necessary.

“This provider leveraged his professional status to pursue illegitimate personal profit, undermining both patient trust and the integrity of federal healthcare programs,” said Tamala E. Miles, special agent in charge with the Department of Health and Human Services, Office of Inspector General. (See news release from the US Attorney’s office for the Department of Justice’s Western District of Kentucky for more details.)

By conspiring to defraud Medicare, Finney became liable to the United States for over $11 million under the FCA, which allows damages three times the government’s loss in addition to penalties.

According to the Kentucky Board of Medical Licensure, Finney obtained his license to practice in the state in 1999. That license expires in February 2023.

Is It Worth Having More Than One State’s License? Here Are Some Downsides

(Edited from MedPage Today article by Christine Lehmann, MA, 6/17/2022)

“Tracking more than about five licenses becomes very cumbersome, time consuming, and expensive,” says Andrew Wilner, MD, internist, neurologist, and epilepsy specialist. “At one point, I had 10 licenses, and I’ve cut it back to about four to be more manageable. I wasn’t using them and it didn’t look like I ever would.”

Wilner, who has worked in locum tenens for decades, says he kept these state licenses because he has a permanent job in Tennessee; he worked before in Arizona and might work locum tenens and/or retire there; he might retire in Florida, and he has worked in South Dakota before and might work locum tenens there.

Theresa Rohr-Kirchgraber, MD, professor of clinical medicine at AU/UGA Medical Partnership in Georgia, holds licenses in that state, Indiana, and North Carolina.

She also held onto her initial license in Ohio for several years after she left the state. “I was told it would be easier to get licensed in other states if I kept my initial state license active. I spent money renewing it for years until I realized it didn’t matter because each time I applied for a new license, I had to start the process over from scratch. I decided to stop renewing it,” she says.

She also let her Georgia license lapse for 12 years when she moved to Indiana. “I had no need for it and didn’t want to waste money on renewals. It still took a few months to reactivate the license when I moved back in 2020 because I had to resend some documents. But it was a little easier than applying for the initial license,” says Rohr-Kirchgraber. She also plans to let ​the Indiana and North Carolina licenses lapse rather than continue to pay the costs of renewing each license.

Whether you’re practicing telemedicine, locum tenens, or have moved recently, you may hold active medical licenses in more than one state. The Federation of State Medical Boards (FSMB) estimates that 23% of physicians hold two or more active medical licenses compared with 77% of physicians who hold just one active license.

But many doctors with multiple state licenses are frustrated by the fees and time-consuming paperwork. Is it worth it?

Fees and Other Frustrations

Cost is a major reason why doctors consider cutting back on the number of licenses they hold. Depending on the state, there are application fees and license processing fees that range from $705 in Florida to $1299 in California. Florida has recently added an annual assessment of $250 to the licensing costs that fund its birth-related Neurological Injury Compensation Association.

Doctors practicing telemedicine also need to work in multiple states to earn a reasonable living. Unless they work for a large company, they typically have to pay their own licensing fees.

“I work as an independent contractor for a small company and have to get enough work to compensate for the fees I pay,” says one teleradiologist. She has active licenses in six states.

“It’s a money-making scheme by state medical boards. My worst fear is that I will forget to renew a license and have to start the process all over again, which is a huge headache,” she said.

Joe Knickrehm, vice president of communications for FSMB, said that physician licensure is the responsibility of individual states. “Licensing fees are necessary to fund, in part, the operations of the state agency responsible for evaluating applicants for licensure, issuing licenses, collecting and evaluating consumer complaints, and taking disciplinary action against a license when necessary.”

Locum tenens companies will pay the cost of licensing, including renewals, if you’re actively working for them and using that license, says Wilner.

“I agree the cost can be expensive, even outrageously expensive in some states, but it’s something that telemedicine and locum tenens doctors generally can absorb,” says Vlad Dzhashi, MD, a hospitalist in Washington who runs the Locum Tenens Guy website. He holds active licenses in six states including California, New York, and Florida.

He is more frustrated about the amount of time he has to spend on paperwork to be licensed in different states. “I feel like some medical boards have very complex documents they want you to complete — the sheer amount of paperwork to get a license can be overwhelming,” he says.

Click here to continue reading about some unique state licensing requirements, how women physicians often experience longer licensing delays than their male counterparts, and some options for shortening the process,

The Healthcare Staffing Story

AMA Pushes Physician ‘Recovery Plan’

(Edited from HealthLeaders Media article by Christopher Cheney, 6/14/2022)

The American Medical Association (AMA) has announced the “AMA Recovery Plan for America’s Physicians” to address pressing challenges facing US doctors, including physician burnout, payers’ prior authorization requirements, and inadequate Medicare payment,

Before the coronavirus pandemic, physician burnout was a national concern, and the pandemic has driven physician burnout to crisis proportions. The Association of American Medical Colleges projects there will be a shortage of physicians between 37,800 and 124,000 clinicians by 2034.

In comments before the AMA House of Delegates, AMA President Gerald Harmon, MD, said the need for action is urgent. “America’s doctors are a precious, and irreplaceable, resource. Physician shortages, already projected to be severe before COVID, have almost become a public health emergency. If we aren’t successful with this Recovery Plan, it’ll be even more challenging to bring talented young people into medicine and fill that expected shortage.”

The AMA Recovery Plan for physicians has five key elements:

  1. Supporting telehealth services including insurance coverage
  2. Reforming the way Medicare pays for physician services
  3. Stopping “scope creep” that expands the scope of practice of non-physicians such as nurse practitioners
  4. Reforming prior authorization of medical services to reduce administrative burden on physician practices and to avoid care delays for patients
  5. Tackling physician burnout and reducing stigma around physician mental health

Read more details about those here.

Read even more extensively about physician burnout in a HealthLeaders interview with Tait Shanafelt, MD, from September 2020.

ARR Healthcare Acquires Enterprise Medical Recruiting

(Edited from PR Newswire release on Yahoo Finance, 5/31/2022)

Enterprise Medical Recruiting, a national physician search and placement firm, announced today they have been acquired by ARR Healthcare (ARRH), Inc., a Dallas-based healthcare staffing corporation that operates a locum tenens company called Alliance Recruiting Resources, Inc. The addition of Enterprise Medical Recruiting will allow ARRH to offer both permanent and temporary physician staffing solutions.

Founded in 1990, Enterprise Medical Recruiting (www.enterprisemed.com) has grown to service multiple physician specialties across the US, through both contingent and retained search. As part of this transition, Executive Vice President Paul Smallwood is being promoted to chief operating officer and will run the day-to-day operations of the business, while Neal Fenster stays on as CEO.

“We are excited to be joining the ARRH team. I believe we have found the perfect partnership that aligns with our values and positions Enterprise for long-term growth,” Enterprise CEO and Founder Neal Fenster said. “Paul’s leadership has been integral to our success, and I look forward to his contributions as we continue to grow.”

ARR Healthcare, Inc., is the parent company of Alliance Recruiting Resources, Inc. which was established in 2001. With offices in both Dallas and Houston, Alliance Recruiting Resources offers locum tenens staffing across multiple physician, CRNA, and NP/PA specialties throughout the United States.

Tools to Try/News to Use

Applying For Malpractice Insurance? How to Manage the Timing

(Edited from Aegis Malpractice podcast/blog, June 23, 2022)

How Long Does It Take to Get Malpractice Insurance Set Up?

If you’re a healthcare provider who is just starting out, or you’re looking to make a career change and need to buy your own malpractice insurance, you might be wondering HOW SOON you should start the process to make sure you can get the proof of insurance you need?

In this article, we’re going to talk about how long it takes to get malpractice insurance set up and what steps you should take to get yourself going quickly and easily. We’ve got an overview of the process for you and a HACK to get you credentialed right away, even if you’re still several months away from seeing your first patient.

Let’s start with the big picture–what’s the process for securing malpractice insurance?

Getting malpractice insurance can be broken down into 5 phases:

  1. Select an agent.
  2. Obtain quotes and review your coverage options.
  3. Complete an application.
  4. Review your offers and bind coverage.
  5. Pay your premium.

The quickest way to get malpractice insurance is to go directly to a company you want to buy from. For example, if you know that you want to work with ProAssurance, simply fill out a ProAssurance application and submit it to the carrier through your agent. They will work with the underwriter to answer any questions, and then you’ll get a quote you can review before binding coverage. You can complete this process in just a few days.

Use an Agent for Multiple Quotes

While direct-to-carrier is the QUICKEST way to get malpractice insurance, it’s probably not the best process. Most doctors don’t know which carrier is best. For you to get a clearer picture of the market and understand your options, use an agent to get premium estimates from multiple carriers

This way you can review all your options, then apply with the carrier you select. Instead of a few days, this might take 1-2 weeks, but it’s a more comprehensive approach. You’ll sleep better at night knowing you’ve done your due diligence in finding the right policy at the best price.

It’s generally recommended that you contact an agent 4-5 months before you anticipate seeing your first patient. This gives you time to discuss your plans to determine which policy type is right for you and how much insurance you may need. Also, it allows the agent to give you some preliminary premium estimates to help you budget.

After your agency has collected the quotes, a representative will present them, explaining the premiums; the differences between carriers; levels of coverage; etc. This is a good time to decide between occurrence or claims-made coverage and to determine what policy limits you’d like. Your agent can provide you with cost estimates for several different options.

Submit Your Application

Once you have selected an insurance carrier, you’ll need to apply formally. Your agent will assist you in completing the application and sending it to the company’s underwriting team for review. It typically takes 3-5 business days for an underwriter to review your application, collect any additional information that they need, and then render a decision.

Most malpractice insurance carriers can approve applications up to 90-days before the policy is set to start. If you need to adjust your coverage effective date after your policy has been approved, it’s OK to request a change.

Once your application is approved, the carrier will issue a bindable quote with formal terms for your consideration. At this time, you’ll be able to review the offer from the insurance carrier and decide if you’d like to accept the policy and bind coverage.

Once you bind, a policy number is generated and your COI. You can use this certificate of insurance for credentialing or any other proof of insurance needs until your full policy is received.

Most insurance carriers do not require premiums to be paid at the time of binding. You generally have 30 days from the start date of your policy to make payment and most insurance carriers offer payment plans or financing options if you need to split up the payments over the year.

Here’s the Hack

If you find yourself in a situation where you just need some quotes, but aren’t ready to apply for coverage yet, contact a knowledgeable malpractice insurance agent to start discussing your options. We frequently talk to doctors who are considering options for the future, but just aren’t ready to apply yet. An agent can help you confidentially explore coverage options and costs.

And here’s the HACK: If you don’t need coverage for several months, but need to provide proof of insurance to get started with credentialing, ask your agent for a Certificate of Insurance with a temporary binder number. This COI will show that you’ve been pre-approved and will allow you to get going quicker, while waiting for the formal policy issuance to unfold in the weeks to come.

As a general rule of thumb, plan on at least 30-days to get your malpractice insurance setup. But, if you find yourself in a pinch and need coverage sooner than that, an experienced agent can speed the process up for you.

Confused by malpractice insurance terminology? Listen to a podcast, watch a video or read a blog on this subject here.

Socially Speaking

How ‘Bout This?

Dr. Peter G. Roode’s Have Scalpel—Will Travel Shares a Traveling Surgeon’s Inspiring Memoir

(Edited from Newswire release, 6/16/2022)

Dr. Roode was a locum tenens surgeon for the last 17 years of his career, providing temporary coverage on more than 240 occasions at some 74 hospitals in 18 states.

His book is a collection of stories about some 90 of the many patients he cared for during those years. Some stories are uplifting, others are pure tragedies, and some are humorous human foibles, but all are full of human interest.

Published by Fulton Books, Dr. Roode’s book was well noted by University of Florida Trauma Medical Director and Surgery Professor R. Stephen Smith, MD, FACS: “It’s an exciting and educational read for medical professionals and the general public alike. This book provides a rare look into the real world of medical care in smaller hospitals.”

Readers interested in a peek behind the scenes into the life of a traveling surgeon can purchase Have Scalpel — Will Travel at bookstores everywhere, or online at the Apple iTunes store, Amazon, Google Play, or Barnes & Noble.

Please direct all media inquiries to Author Support via email at support@fultonbooks.com or via telephone at 877-210-0816.

Staffing-Related Snippets

Illinois Governor Signs Healthcare Staffing Regulations into Law

(Edited from SIA Daily News, 6/2/2022)

Illinois Gov. JB Pritzker recently signed into law legislation that will restrict ‘noncompetes’ and conversion fees, while requiring healthcare staffing firms to submit reports to the state on the average charges for nurse staffing, the Illinois Department of Labor (IDOL) reported.

In a May 31 news release, the state said the new law, which takes effect July 1, will:

  • Prohibit nurse staffing agencies from entering into noncompete covenants with nurses and certified nurse aides.
  • Prohibit nurse staffing agencies from requiring the payment of liquidated damages, conversion fees, employment fees, buy-out fees, placement fees, and/or other compensation if a healthcare facility hires the agency’s contractor permanently.
  • Require nurse staffing agencies to disclose new healthcare facility contracts to the IDOL within 5 business days of the effective date (protected from Freedom of Information Act).
  • Pay wage rates that match those identified on the contract. Failure to do so allows the department to recover underpaid wages for the worker.
  • Add quarterly reporting requirements to the IDOL on average charges to healthcare facilities.

US Senator Introduces Bill to Study Healthcare Staffing Business Practices During COVID

(Edited from SIA Daily News, 6/7/2022)

Sen. Kevin Cramer (R-ND) introduced the “Travel Nursing Agency Transparency Act” announced on Monday, June 6.

The legislation would require the Government Accountability Office to conduct a study and report to Congress on the business practices and the effects of [staffing] agencies across the healthcare industry during the COVID-19 pandemic.

“Nurses…provide an essential service to our communities,” Cramer said in a news release. “However, [staffing] agencies are reportedly taking advantage of the demand created by workforce shortages, charging inflated rates and keeping a significant percentage for their own profits. [These practices] could have far-reaching effects on the quality of our health care system in rural America and must be reviewed.”

The bill is supported by the North Dakota Medical Association, North Dakota Hospital Association, and American Hospital Association.

FTC Looks to Restrict Use of Noncompete Agreements

(Edited from Becker’s Hospital Review article by Molly Gamble, 6/9/2022)

The Federal Trade Commission (FTC) is considering a new regulation to tighten employers’ use of noncompete clauses and plans to target their use in individual cases through enforcement, The Wall Street Journal reports.

About 18 percent of all U.S. workers are affected by noncompete agreements, according to data analyzed by researchers cited by WSJ. Noncompete clauses are common practice in healthcare, particularly for executives and employed physicians, though the terms vary. In general, the covenants limit a person’s ability to get a new job with a competitor via restrictions on geography, time, or line of business.

The FTC’s move comes as companies increasingly make use of noncompete clauses in the hiring of hourly workers. President Biden in 2021 urged FTC Chair Lina Khan to exercise the agency’s statutory rulemaking authority to curtail the use of noncompete clauses and other clauses that may unfairly curb worker mobility.

Read the report in full here.

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