Antitrust Enforcement of No-Poach Agreements in Health Care and Unique Considerations for AMCs
This Briefing is brought to you by AHLA’s Academic Medical Centers and Teaching Hospitals Practice Group.
- August 18, 2022
- Derek Kelley , K&L Gates LLP
- Lauren Donahue , K&L Gates LLP
- Rebecca Schaefer , K&L Gates LLP
It is not news that academic medical centers (AMCs) are facing significant financial pressures. Inflation is driving up costs and payers continue to push down reimbursement rates. Further, the pressures of COVID-19 and the so-called “Great Resignation” have led to significant staff shortages, with those who are willing to stay in the profession demanding higher salaries and benefit packages. AMC leadership and administrators have a natural incentive to want to look for ways to keep wages in check while still retaining their employees. Under these conditions, it may be tempting to reach out to a rival health system to discuss these challenges and perhaps agree not to one-up each other when it comes to employee salaries, or to agree not to solicit each other’s employees, in an attempt to slow the employee churn. Even when all in the name of assuring the availability and affordability of quality patient care, these types of activities can raise significant antitrust risk.
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