Proposal would protect healthcare workers and limit some hospital CEO pay

Employers and other covered parties would be barred from punishing healthcare professionals for reporting medical staff rule violations or commenting on patient care. It covers licensed physicians, physician assistants, advanced practice registered nurses, and registered nurses. The defined hospitals include inpatient hospitals, rural emergency hospitals, certain outpatient departments, and hospital-owned medical practices. This protection would apply to employers, employees, and prospective employees starting when the act becomes law.

Agreements with healthcare professionals would have to leave room for safety and wrongdoing reports; hospital employment contracts could not bar them from competing for work. These rules cover licensed physicians, physician assistants, advanced practice registered nurses, and registered nurses. The ban on non-compete clauses applies to those employed by a hospital. Nondisclosure agreements must say they do not restrict reports of safety concerns, ethical violations, or illegal activity. A patient could ask for information about a professional's new practice, and the recipient must provide it if available. An agreement that breaks these rules would be void; a professional who wins a challenge could receive damages and reasonable legal fees and costs. The contract rules would apply to agreements entered into, changed, or renewed on or after July 1, 2026.

The text would limit the learned profession exception for healthcare providers to specified healthcare-related acts and omissions. This provision concerns healthcare providers as defined in G.S. 90-21.11. The exception would apply only to acts or omissions directly related to providing medical, dental, or other healthcare that are subject to litigation under Article 1B of Chapter 90.

A qualifying hospital's chief executive could not receive yearly compensation above 400 times the hospital's minimum compensation; the hospital would owe a penalty equal to the executive's yearly compensation if it exceeded that limit. The limit covers the highest-ranking executive at a qualifying hospital, including salary, bonuses, incentives, severance, certain loans and benefits, and stock-related value. A qualifying hospital must be licensed, accept state funds, and be exempt from federal taxes under section 501(c)(3). Minimum compensation is based on a full-time minimum-wage worker if the hospital has one; otherwise, it is based on its lowest-paid full-time worker. Hospitals would report the prior year's pay by March 1. The Commission would give penalty notice by April 1, and hospitals would pay by May 1.

The Department of Health and Human Services would have to exempt certain new health services from its review. It covers a new institutional health service established, developed, or acquired by an entity working in partnership or conjunction with the Department of State Treasurer. This provision would take effect when the act becomes law.