Texas 2023 - 88th Regular

Texas House Bill HB3411

Voted on by House
 
Out of Senate Committee
 
Voted on by Senate
 
Governor Action
 
Bill Becomes Law
 

Caption

Relating to restrictions on covenants not to compete for physicians and certain other health care practitioners.

Impact

The proposed changes aim to alleviate some of the restrictions placed on healthcare providers, fostering a more favorable work environment. By ensuring that physicians can continue to care for their patients and retain access to their records, HB3411 seeks to promote continuity of care and patient-provider relationships. The bill is particularly significant in regions where medical competition is high, as it aims to balance the interests of healthcare providers with the necessity to ensure patient care is prioritized. Overall, the bill is poised to impact the way healthcare contracts are negotiated and enforced across Texas.

Summary

House Bill 3411 addresses the enforceability of covenants not to compete specifically for healthcare practitioners, including physicians, dentists, nurses, and physician assistants. The bill introduces new regulations restricting the conditions under which such non-compete agreements can be enforced. These regulations mandate that any covenant must allow health care practitioners access to their patient lists and medical records after termination of employment, provide a reasonable buyout option, and ensure geographic restrictions are limited to a five-mile radius. Furthermore, the covenants are required to expire within one year post-termination, enhancing the rights of healthcare professionals in their practice post-employment.

Sentiment

The sentiment surrounding HB3411 appears to be largely supportive among healthcare practitioners and advocates for patient access. Many view the bill as a step in the right direction toward enhancing professional autonomy and protecting patient relationships. However, there could be concerns from certain employers regarding the implications of these restrictions, fearing that they may lose talented employees more easily to competing practices. The ongoing discourse reflects a broader tension between the rights of healthcare providers and the interests of healthcare organizations.

Contention

Some points of contention stem from discussions on whether the regulations provide sufficient protections for healthcare employers or if they disproportionately favor employees. Critics may argue that limiting non-compete agreements could lead to an increase in physician turnover or create instability within healthcare systems if providers frequently move between practices. Supporters counter that the bill is necessary to protect patient care and ensure that practitioners are not hindered by overly restrictive employment contracts. This contention highlights the broader debate on the balance of power in medical employment contracts.

Companion Bills

TX SB1534

Identical Relating to restrictions on covenants not to compete for physicians and certain other health care practitioners.

Similar Bills

No similar bills found.