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How noncompetes might be impacting providers and hospitals.

Hello! Next week’s prognosis: stronger margins. Join us virtually to see how healthcare providers are using predictive analytics and automation to stop revenue leaks, accelerate cash flow, and refocus on patient care—not paperwork.

In today’s edition:

Quelling competition

CISA’s looming end

Gold card, bronze impact?

—Caroline Catherman, Maia Anderson

PROVIDERS

Illustration of a noncompete agreement

Francis Scialabba

As some in the medical field know too well, it can be hard to leave a healthcare job.

Sure, patient relationships and coworker bonds are difficult to sever, but one of the top things keeping many from branching off on their own just might be their contracts.

Between 37% to 45% of US physicians are in employer agreements that limit where they can work after they leave or how long they must stay in their current position, according to professional group the American Medical Association (AMA), compared to about 18% of the overall workforce nationwide, per a 2021 article in the Journal of Law and Economics.

On Sept. 10, the Federal Trade Commission (FTC) announced it had sent warning letters to several healthcare and staffing companies with potentially “unreasonable noncompete agreements in employment contracts.” A few days earlier, it had asked for public comment to inform “case-by-case” enforcement of noncompetes going forward.

This comes shortly after the commission announced Sept. 5 it’s officially abandoning attempts to defend a ban on all noncompetes that it passed in April 2024.

So, what’s next for noncompetes?—CC

Presented By LinkedIn

CYBERSECURITY

Red folders in the shape of a hospital cross with a mouse pointer

Francis Scialabba

The healthcare industry has seen an increasing number of cyberattacks in recent years, and time is running out for Congress to renew legislation that experts say is key to detecting threats before an attack takes place.

Deemed the Cybersecurity Information Sharing Act of 2015, or CISA, the legislation makes it possible for organizations that scan for cyber threats to share information about potential bad actors before a cyberattack occurs and without potential legal liability. But the act is set to expire on Sept. 30, and experts told Healthcare Brew that without it, the healthcare system would be more vulnerable.

“When information is not shared, it gives an upper hand to the attackers because they go undetected,” Mike Nelson, VP of digital trust at cybersecurity firm DigiCert, said. “The unfortunate result is that, as less information is shared, attacks will certainly go up.”

With the expiration looming, here’s where things could stand.—MA

INSURANCE

Caduceus, Healthcare medical symbol on gold card.

Emily Parsons

In the world of prior authorization reforms, an insurance “gold card” may sound like a golden ticket. But some providers say the shine wears off fast.

This program, offered by UnitedHealthcare and states like Arkansas and Texas, allows providers with a track record of approved prior authorizations to bypass some of the process’s hurdles. And there are a lot of hurdles. Prior authorizations take up an average of 13 hours of a physician’s week, according to a 2024 American Medical Association (AMA) survey.

A Sept. 4 press release from United claims a 40% increase in the number of provider groups qualifying this year compared to the year before, though United didn’t provide Healthcare Brew with the actual number.

But despite the program’s growth, gold cards don’t seem to be making a huge impact. Only 3% of providers in Texas qualified for the state’s gold card in December 2024, according to the Texas Department of Insurance. And an AMA survey published in August 2024 found just 8% of 1,000 physicians contracted with health plans that offered programs like gold cards.

Nothing gold can stay, after all.—CC

Together With Pri-Med

VITAL SIGNS

A laptop tracking vital signs is placed on rolling medical equipment.

Francis Scialabba

Today’s top healthcare reads.

Stat: Less than 5%. That’s the percentage of plastic used in healthcare that gets recycled, according to a new report. (Healthcare Dive)

Quote: “LLMs are theoretically very powerful and they can give great advice, but they can also give truly terrible advice depending on how they’re prompted.”—Adam Rodman, a general internist at Beth Israel Deaconess Medical Center and head of an AI task force at Harvard Medical School, on patients using AI chatbots to interpret their test results (KFF Health News)

Read: How dental insurance works and how it’s different from health insurance. (the New York Times)

Get staffed, stat: Hiring gaps don’t fill themselves. LinkedIn’s got top tips from healthcare organizations on how to attract, retain, and build healthcare talent. Grab your copy of the report and start closing the gap.*

*A message from our sponsor.

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