Missouri Senate Bill SB383

Missouri 2025 Regular Session

• Introduced: 1/8/25
• Refer: 2/17/25

Caption

Creates provisions relating to covenants not to compete involving physicians

Impact

The passage of SB 383 would represent a significant change in the landscape of employment agreements within the healthcare sector. By imposing limits on the duration and geographic scope of enforceable non-compete agreements—specifically capping them at 365 days and extending to a maximum of 50 miles from a physician's office—the bill is designed to increase physician mobility and reduce barriers for healthcare professionals pursuing new opportunities. This could ultimately enhance patient access to care by facilitating a more fluid workforce among physicians.

Summary

Senate Bill 383 seeks to regulate the enforceability of covenants not to compete for physicians in the state of Missouri. The bill stipulates that such covenants can only be enforceable if the physician is providing health care services in a clinical setting and if the employer is not a healthcare entity owned by a nonprofit corporation exempt from federal income tax. This restriction limits the applicability of these covenants, especially concerning nonprofit healthcare providers, which could influence how medical facilities structure their employment contracts with physicians.

Contention

Discussions surrounding SB 383 may bring about contrasting opinions on the balance between protecting employers' business interests and ensuring fair employment practices for healthcare providers. Proponents of the bill argue that restricting non-compete clauses is necessary to prevent stagnant practices that limit patient choice and physician autonomy, while critics may express concerns that such measures could undermine the stability of healthcare institutions relying on contractual agreements to safeguard their investments in employee training and practice development.