Bill to help health care professionals stay in rural Maine signed into law

AUGUSTA – LD 2200, a bill recommended by a State commission on hospitals and health care to ban the use of certain non-compete clauses for health care providers, was signed into law on Wednesday, April 15. Non-compete clauses are provisions written into contracts that prevent someone from working in the same field or the same geographic area if they leave their current employer.

“We must do everything we can to make sure health care providers have the freedom and opportunity to practice in all parts of Maine. This bill makes sure no provider will be prevented from practicing where they’re most needed,” said Sen. Mike Tipping, D-Orono. “These kinds of restrictive clauses should be outlawed for all workers but, at the very least, we shouldn’t be preventing doctors and other health care providers from changing jobs or setting up a new practice, especially in parts of rural Maine where they’re most needed.”

“Noncompete clauses in health care employment contracts are hurting providers’ ability to practice where they are needed most. This is making care deserts in our state even worse, especially in rural areas,” said Rep. Michelle Boyer, D-Cape Elizabeth. “This bill will help ease our shortage of health care professionals and improve Mainers’ options for care.”

LD 2200 prohibits and employer from requiring or permitting a health care practitioner to enter into a non-compete agreement with that employer if the health care practitioner is employed by an entity in which the health care practitioner does not have an ownership interest.

In 2024, the Federal Trade Commission passed a rule banning non-compete clauses nationwide as an unfair trade practice because they limit choice and competition. The rule was prevented from going into effect, and new leadership at the FTC has reversed their position. LD 2200 will implement the spirit of this rule within the health care setting.

This past fall, Sen. Tipping and Rep. Boyer chaired the Commission to Evaluate Regulatory Review and Oversight of Health Care Transactions That Impact the Delivery of Health Care Services in the State, from which this bill was one recommendation.

Other commission recommendations that have become bills signed by the Governor include LD 2201, which better protects Maine hospitals from being bought up by private equity firms and LD 2189, which requires that a hospital provide at least 120 days’ notice prior to the termination of maternity or newborn care services.

The final report is available online here. All of the Commission’s work can be found online here.

Other members of the Commission included health care stakeholders such as representatives of the hospital industry, long-term care and nursing home facilities, health insurance consumers, health insurance carriers and health care purchasers.

As non-emergency legislation, LD 2200 will go into effect 90 days after the Legislature adjourns.

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