Jun 13, 2023 - American Medical Association
By Andis Robeznieks, Senior News Writer
To protect physicians and boost patient access, the House of Delegates took action to ban noncompete contracts for physicians in clinical practice who are employed by for-profit or nonprofit hospitals, hospital systems or staffing company employers.
Unfair noncompete clauses are extensive in health care, affecting between 37% and 45% of physicians. They can be especially problematic for residents, fellows and young physicians by limiting their opportunities for career advancement and restricting their ability to provide care in economically or socially marginalized communities.
Concerns about noncompetes became especially acute when, during the COVID-19 pandemic, physicians advocating for health care worker safety were threatened with termination. Because of noncompete clauses, this could have meant months or years of unemployment or geographic relocation.
Removing noncompete clauses is also seen as a way to improve patient access, enhance the availability of specialist coverage in a community and reduce health inequities by allowing physicians to work for multiple hospitals.