Missouri Senate Bill SB803

Missouri 2022 Regular Session

• Introduced: 1/5/22
• Refer: 1/20/22

Caption

Prohibits certain restrictive covenants between physicians and advanced practice registered nurses and nonprofit hospitals and health systems

Impact

The implications of SB803 are significant for Missouri's healthcare landscape. By invalidating restrictive covenants that limit the rights of physicians and nurses, the bill seeks to promote a more competitive job market for healthcare professionals. This is particularly critical in a climate where healthcare shortages are increasingly prevalent. The removal of such restrictions may encourage a larger number of healthcare workers to transition between employers, fostering a dynamic environment conducive to retaining talent within the state and improving patient access to care.

Summary

Senate Bill 803 aims to amend existing laws concerning restrictive employment covenants specifically for physicians and advanced practice registered nurses within the state of Missouri. The legislation prohibits any contract or agreement between nonprofit hospitals or health systems and these healthcare professionals that restricts their right to practice medicine or nursing in any geographic area for a specified period following the termination of their professional relationships. This legislative move aims to enhance professional mobility among healthcare workers, ensuring they are not unduly limited in their ability to secure new job opportunities after leaving an employer.

Contention

While supporters of SB803 view it as a progressive step towards empowering healthcare providers and addressing workforce shortages, there are concerns from some stakeholders regarding the potential negative impact on healthcare institutions. Critics argue that such measures could lead to increased competition for patients, which might undermine the financial stability of nonprofit hospitals and health systems. Health organizations worry about challenges in maintaining clinical continuity and collaborative practice if physicians are more mobile and can easily leave for competitors, potentially disrupting patient care.