Creates provisions relating to covenants not to compete involving physicians
Impact
The impact of SB1396 could be significant for both healthcare providers and employers. The bill stipulates that a covenant not to compete will only be enforceable if the physician is practicing in a clinical setting and if the employer is not a nonprofit healthcare entity. Furthermore, it limits the duration of such covenants to a maximum of 365 days and restricts the geographical range to 50 miles from the physician’s office. This aims to protect physicians' ability to relocate and practice without undue barriers, fostering greater mobility within the healthcare workforce.
Summary
Senate Bill 1396 seeks to amend existing laws concerning covenants not to compete specifically for physicians in Missouri. The bill proposes to delineate the circumstances under which such covenants can be deemed enforceable. The legislation defines 'covenants not to compete' as agreements in which an employee agrees to refrain from practicing in competition with their employer for a certain period and within a specified geographic area. This bill sets specific conditions on these agreements to enhance fairness in the physician employment landscape.
Contention
Notable points of contention surrounding SB1396 center on the balance between protecting the interests of healthcare providers and those of healthcare employers. Proponents of the bill argue it is necessary to ensure physicians can practice without being unfairly restricted after leaving an employer, thereby promoting competition and patient access to care. Opponents might express concerns regarding the potential impact on healthcare entities that invest in training and development for their employees, fearing that such legislation could lead to increased turnover and a dilution of investment in the development of physician specialties.