Physician Employment Contracts: What About the Non-Compete?

If you are a physician reviewing an employment contract, one provision that deserves careful attention is the noncompete clause. A noncompete can limit where you may practice after leaving your employer.

The goal of a restriction on competition (or a “non-compete”) is to balance the employer’s legitimate business interests with the physician’s ability to continue practicing. In most cases, these restrictions are valid as long as they are “reasonable”. What is reasonable depends on the length of the restriction, the geographic area, the type of practice, and the circumstances - and the rules also vary by state.

Physician noncompetes can also be different from noncompetes in other occupations. A physician employment agreement raises additional concerns about the physician's ability to continue practicing and the ability of patients to access care.

Depending on the agreement, there may be ways to balance the interests that are more physician-friendly. For example, instead of the non-compete clause limiting your ability to practice within 10 miles of each practice location - perhaps it could be limited to only locations at which you have regularly practiced during the past year.

Because every physician employment agreement differs, it is important to have the contract reviewed before signing. Understanding the noncompete before you sign is much easier than trying to negotiate it after you leave the practice. Contact our office today if we can help with your employment agreement.