Restrictive covenants, also known as non-compete clauses, are becoming increasingly common in physician contracts. These clauses restrict the ability of a physician to practice medicine within a certain geographic area or for a certain period of time after leaving their current employer.
While some argue that restrictive covenants are necessary to protect the investments made by employers in their physicians, others argue that they limit the ability of physicians to pursue their careers and can ultimately harm patient care.
In general, there are two types of restrictive covenants: geographic and temporal. Geographic restrictive covenants limit the ability of a physician to practice medicine within a certain geographic area, typically defined by a radius from their current employer’s location. Temporal restrictive covenants limit the ability of a physician to practice medicine for a certain period of time after leaving their current employer.
Proponents of restrictive covenants argue that they are necessary to protect employers’ investments in their physicians. Employers often invest significant resources in recruiting and training physicians and want to ensure that they receive a return on their investment. A restrictive covenant can prevent a physician from leaving their current employer and immediately setting up a competing practice in the same area, thus protecting the employer’s business interests.
Opponents of restrictive covenants argue that they limit the ability of physicians to pursue their careers and can ultimately harm patient care. Physicians may be forced to turn down job opportunities or relocate to another area because of a restrictive covenant, limiting their ability to provide care to patients in need. Additionally, restrictive covenants can create a shortage of physicians in certain areas, ultimately harming patient access to care.
It is important for physicians to carefully review any restrictive covenants in their contracts before signing. They should consider the potential impact on their career and ability to provide care to patients. If a restrictive covenant is too broad or restrictive, it may be worth negotiating with the employer to modify or remove it.
Ultimately, both employers and physicians must consider the potential benefits and harms of restrictive covenants in physician contracts. While they may be necessary to protect business interests, they can also limit the ability of physicians to pursue their careers and provide care to patients. It is important to carefully consider the potential impact of restrictive covenants before including them in physician contracts.