On Jul. 12, PEN LEG passed bill prohibiting healthcare non-competes.
PEN LEG passed bill HB 1633 which prohibits noncompete covenants by health care practitioners, employers; known as Fair contracting for health care practitioners act.
Currently, medical employers allowed to use noncompete covenants, which impedes ability of health care practitioner to practice independently or in competing employer.
Bill Amendments
Revised health care practitioner definition, including medical doctor, osteopathy doctor, certified registered nurse anesthetist, nurse practitioner, and physician assistant.
Removed provision on noncompete covenants; where a noncompete covenant entered into after bill effective date deemed contrary to public policy, void, unenforceable
Exception where employer may enforce noncompete covenant if length of noncompete covenant is less than one year, if health care practitioner not dismissed by employer.
Revised patient notification requirements if health care practitioner leaves employer.
Added provision to provide for a study by the Health Care Cost Containment Council.
Legislative History
On Aug. 29, 2023, bill introduced into House; on Apr. 17, 2024, bill passed the House.
On May 1, 2024, bill introduced into Senate; on Jul. 11, 2024, bill passed Senate.
On Jul. 11, 2024, House concurred Senate amendments; on Jul. 12, sent to governor.
Effectiveness
If enacted, act will take effect on Jan. 1, 2025.
Jul. 17, 2024 PEN LEG Governor Approval
On Jul. 17, 2024, PEN LEG reported governor approved HB 1633 and assigned Act 74.
