From new states targeting noncompete agreements for healthcare employees to enhanced federal scrutiny on state-level development laws, here are X recent legal updates ASC leaders should know:
1. A bill making its way through the Ohio state Senate would limit the noncompete agreements in contracts between nonprofit hospitals and physicians, nurses and other clinicians . The bill is sponsored by state Sen. Terry Johnson, DO, a Republican from Portsmouth, a retired physician. The bill specifically targets restrictive noncompete with geographic limitations.
2. Nebraska Governor Jim Pillen signed legislation April 14 prohibiting noncompete agreements for healthcare staffing agencies and establishing new registration requirements for the industry.
3. A new law in Tennessee will create tighter restrictions surrounding noncompete agreements, including new policies surrounding compensation thresholds and length of agreements. Under the law, noncompete agreements are void and unenforceable for employees earning less than $70,000 in annualized compensation, including wages, salary, commissions, nondiscretionary bonuses and other forms of remuneration. For hourly employees, annual compensation must be calculated by multiplying the hourly rate by 40 and multiplying the product by 52.
4. Lawmakers in North Carolina advanced legislation that would repeal parts of the state’s certificate-of-need law May 14. Senate Bill 1040 cleared the state Senate Health Committee earlier in May. The bill would eliminate CON requirements for ASCs across the state and remove the approval process for inpatient rehabilitation facilities.
5. The Federal Trade Commission began ramping up its efforts to increase healthcare competition at the state level in April, when it warned lawmakers in Tennessee that the state’s application to the federal Rural Health Transformation program could be at risk if they did not accelerate their repeal of CON laws. As Tennessee lawmakers were working to repeal the state’s CON, it was also working to repeal Johnson, Tenn.-based Ballad Health’s Certificate of Public Advantage. As originally written, the bills would have seen Ballad’s COPA expire on June 30, 2028, and the state’s CON repeal would not take effect until July 1, 2030.
The Tennessee Legislature ultimately reworked the bills. Governor Bill Lee signed legislation eliminating CON requirements for new acute care hospitals, satellite emergency departments and cardiac catheterization services May 6. CON requirements statewide will expire July 1, 2030.
At the Becker’s 32nd Annual Meeting: The Business and Operations of ASCs, taking place October 29-31 in Chicago, ASC leaders, surgeons and healthcare executives will explore strategies to drive growth, enhance operational performance, navigate reimbursement challenges and prepare for the future of ambulatory surgery. Apply for complimentary registration now.