FTC ISSUES RULE BANNING NONCOMPETES

The Federal Trade Commission (FTC) voted to issue a final rule that would ban most noncompete clauses nationwide. Existing and new noncompetes for most workers would not be enforceable after the rule’s effective date; the rule does not ban existing noncompete agreements for senior executives earning more than $151,164 annually in policymaking positions.

Partners in a business, such as physician partners of an independent physician practice, would also generally qualify as senior executives, assuming the partners have authority to make policy decisions about the business. In contrast, a physician who works within a hospital system but does not have policymaking authority over the organization as a whole would not qualify.

The U.S. Chamber of Commerce has filed a lawsuit challenging the rule. Implementation is likely to be on hold pending resolution in the courts.

RULE PROHIBITING DISCLOSURE OF CERTAIN REPRODUCTIVE HEALTH INFORMATION FINALIZED

The Department of Health and Human Services Office for Civil Rights (OCR) finalized a rule to prohibit the disclosure of protected health information (PHI) related to lawful reproductive healthcare in certain situations. OCR is updating the HIPAA Privacy Rule to prohibit the use or disclosure of PHI when it is sought to investigate or impose liability against patients, healthcare providers, or others related to legal reproductive health services.

The final rule requires covered entities and business associates to obtain a signed attestation that certain requests for PHI potentially related to reproductive healthcare are not for prohibited purposes. Covered entities must also modify their Notice of Privacy Practices (NPP). For more information, see OCR’s fact sheet.

MGMA OPPOSES EXPANDING PRIOR AUTHORIZATION IN ASCS

MGMA commented on the Centers for Medicare and Medicaid Services' (CMS) proposed demonstration project to expand prior authorization requirements in traditional Medicare to Ambulatory Surgical Centers (ASCs) for certain procedures in ten states. Our letter outlines the onerous administrative burden that prior authorization places on medical groups and our opposition to expanding prior authorization requirements in ASCs for Medicare Part B.