IU Health’s new policy would apply to new and existing contracts with primary care physicians.

The Federal Trade Commission's ban on noncompetes would impact the health care industry when and if it goes into effect. Some in the industry are applauding the rule, while others are voicing their dismay and vowing to sue.

The Federal Trade Commission has voted to ban employment agreements that typically prevent workers from leaving their companies for competitors, or starting competing businesses of their own.

Noncompete agreements are a common part of physician contracts restricting their employment options. Hospitals love them, most physicians hate them and some states are trying to limit them. A new law in Indiana is facing its first real test in courts.

The case was the first known application of recent legislation further restricting noncompete agreements between physicians and their employers — but even as the court declared the doctor’s arguments “convincing,” it declined to apply that law.