Creates provisions relating to covenants not to compete involving physicians
Impact
The bill stipulates that a covenant not to compete between a physician and an employer is enforceable only if certain conditions are met, including that the physician is providing healthcare services in a clinical setting; the employer is not a healthcare entity owned by a nonprofit corporation; the duration of the covenant does not exceed 365 days; and the geographical area of restriction does not exceed 50 miles from where the physician provides healthcare services. This could significantly impact employment agreements in the healthcare sector by providing clearer guidelines on the enforceability of non-compete clauses for physicians.
Summary
House Bill 2754 aims to amend chapter 191 of the Revised Statutes of Missouri by introducing new provisions concerning covenants not to compete involving physicians. The bill defines a covenant not to compete as an agreement where an employee (physician) agrees to refrain from competition with their employer for a specified time and within a specific geographic area upon the termination of their employment. This legislation is specifically targeted at physicians and outlines conditions under which such covenants can be valid and enforceable.
Contention
While the bill seeks to protect the interests of employers by allowing them to limit competition from departing physicians, it may also raise concerns among some stakeholders regarding physician mobility and patient access to care. Critics may argue that overly restrictive non-compete agreements can harm both physicians and patients by limiting the ability of physicians to find new employment or provide services within a reasonable distance, potentially impacting healthcare access in certain areas.