Florida 2022 Regular Session

Florida House Bill H1449 Compare Versions

Only one version of the bill is available at this time.

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7	7	CODING: Words stricken are deletions; words underlined are additions.
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10	10	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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14	14	A bill to be entitled 1
15	15	An act relating to invalid restrictive covenants in 2
16	16	health care; amending s. 542.336, F.S.; defining the 3
17	17	terms "hospital" and "physician"; specifying that 4
18	18	certain restrictive covenants in employment agreements 5
19	19	between physicians and hospitals do not support a 6
20	20	legitimate business interest; authorizing a party to 7
21	21	an employment agreement to elect to have a mutually 8
22	22	agreed upon arbitrator make a specified bindin g 9
23	23	determination; providing a legislative finding; 10
24	24	providing applicability; providing an effective date. 11
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26	26	Be It Enacted by the Legislature of the State of Florida: 13
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28	28	Section 1. Section 542.336, Florida Statutes, is amended 15
29	29	to read: 16
30	30	542.336 Invalid restrictive covenants. — 17
31	31	(1) As used in this section, the term: 18
32	32	(a) "Hospital" means a hospital as defined in s. 19
33	33	395.002(13) which is licensed under chapter 395 and part II of 20
34	34	chapter 408. 21
35	35	(b) "Physician" means a person licensed to practice 22
36	36	medicine under chapter 458 or osteopathic medicine under chapter 23
37	37	459. 24
38	38	(2) A restrictive covenant entered into with a physician 25
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47	47	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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51	51	who is licensed under chapter 458 or chapter 459 and who 26
52	52	practices a medical specialty in a county wherein one entity 27
53	53	employs or contracts with, either directly or through related or 28
54	54	affiliated entities, all physicians who practice such specialty 29
55	55	in that county is not supported by a legitimate business 30
56	56	interest. The Legislature finds that such covenants restrict 31
57	57	patient access to physicians , increase costs, and are void and 32
58	58	unenforceable under current law. Such restrictive covenants 33
59	59	shall remain void and unenforceable for 3 years after the date 34
60	60	on which a second entity that employs or contracts with, either 35
61	61	directly or through related or aff iliated entities, one or more 36
62	62	physicians who practice such specialty begins offering such 37
63	63	specialty services in that county. 38
64	64	(3) A restrictive covenant in an employment agreement 39
65	65	between a physician and a hospital is not supported by a 40
66	66	legitimate business interest if it does not include an option 41
67	67	for the physician to buy out of the restrictive covenant at a 42
68	68	reasonable price. Any party to an employment agreement which 43
69	69	believes that the price to buy out of the restrictive covenant 44
70	70	in the agreement is unreas onable may elect to have a mutually 45
71	71	agreed upon arbitrator determine a reasonable price, and such 46
72	72	arbitrator's decision is binding on the parties. The Legislature 47
73	73	finds that a restrictive covenant without this option limits 48
74	74	patient access to physicians and increases costs and is void and 49
75	75	unenforceable. This subsection applies to restrictive covenants 50
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81	81	CODING: Words stricken are deletions; words underlined are additions.
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84	84	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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88	88	entered into on or after July 1, 2022. 51
89	89	Section 2. This act shall take effect July 1, 2022. 52