Is a Non-Compete Enforceable Against a Departing Healthcare Provider?
By Kimberly J. RuppelChair, Healthcare Litigation Task Force, Dickinson Wright PLLC
Non-compete provisions are common in healthcare employment agreements. These provisions are designed to prohibit an employed or contracted provider from competing against their employer by preventing them from working for or starting a competing business within a certain geographic area for a set period. In the healthcare space, enforcing such restrictions presents challenges. Courts tend to disfavor limiting a patient’s ability to be treated by a known provider. At the same time, providers may be unwilling to comply with a non-compete by moving out of a restricted area, uprooting family and leaving behind established patient relationships. Yet, employers are faced with the prospect of losing not only a valued employee, but also potentially the patients that the provider treated. This article discusses terms and concepts that employers may include in employment agreements in order to legally protect business interests.
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