The Minnesota Attorney General’s office is investigating Wausau, Wis.-based Aspirus Health after physicians in Duluth, Minn., alleged they were pressured to sign contracts that may violate the state’s 2023 ban on noncompete agreements, the Minnesota Reformer reported Oct. 17.
Physicians allege Aspirus recently issued amended contracts with updated compensation terms and a renewed noncompete clause that would prohibit them from working for competing hospitals after they leave.
Aspirus merged with Duluth-based St. Luke’s in 2024 to form a 19-hospital system with more than 1,300 employed physicians and advanced practice providers across Wisconsin, Michigan and Minnesota.
The antitrust division of the Minnesota attorney general’s office has issued a subpoena to Aspirus and is in the preliminary stages of its investigation, Brian Evans, a spokesperson for the attorney general’s office, said in a statement shared with Becker’s.
“All too often, noncompete agreements are used to prevent workers from seeking new job opportunities that offer better pay and working conditions,” the statement read. “After receiving complaints from employees, the Minnesota Attorney General’s Office has opened an investigation into the use of noncompete agreements at Aspirus St. Luke’s and has served the company with a subpoena for additional information on those agreements.”
Physicians interviewed by the Minnesota Reformer said the new contract language significantly alters sections on pay, scheduling and work expectations. They described the amended agreement as “very physician-unfriendly and very administration-friendly,” giving Aspirus broad authority to change work hours, locations and patient loads. Some physicians also reported pay cuts under the revised terms.
Physicians also expressed concern over the noncompete clause, which remains despite Minnesota’s 2023 ban. While the language carries over from previous agreements, employment lawyers argue that annually renewed contracts may count as new agreements and fall under the law’s restrictions, according to the report.
The physicians, who requested anonymity because of retaliation concerns, told the publication they were told failure to sign would be interpreted as a resignation.
“Aspirus Health is a values-driven organization with a mission to heal people, promote health and strengthen communities,” a spokesperson for the health system said in a statement shared with Becker’s. “We look forward to working closely with the attorney general’s office to clarify any misunderstanding.”
The investigation comes amid a broader national debate over noncompete clauses in healthcare. Last year, the Federal Trade Commission issued a rule banning most noncompetes. But in August 2024, a Texas judge vacated the rule, and the FTC dropped its appeals in September 2025 — a few months after President Donald Trump began his second term in the White House.
The policy had drawn strong opposition from hospital industry groups. The American Hospital Association and the Federation of American Hospitals warned that eliminating noncompetes could exacerbate workforce shortages and disrupt recruitment. FAH President and CEO Chip Kahn described the proposed rule as a “double whammy” that would make it more difficult to retain staff and create unfair competition between tax-exempt and taxpaying hospitals.
Although the FTC rule will not take effect, FTC Chair Andrew Ferguson said the agency will continue to pursue individual enforcement actions using existing antitrust authority.
In Minnesota, however, the state-level ban remains in place, and enforcement may hinge on how courts interpret whether contract renewals constitute “new agreements” under the law, according to the Reformer.
