Non Compete Agreement For Physicians
If the financial impact of creating a new job is too costly, doctors still have to earn an income before the non-competition clause expires. WADA added that competition bans can provide employers with the security they need to invest significant resources in the success of the physician employed, without fear that the doctor will subsequently leave the employer, after the doctor has developed a significant patient base and has taken these patients with him. Such regulations may also benefit physicians who would otherwise not have benefited from their employer`s time and resources without any non-competition clause. Often, the processing of the fine details of a non-competition clause after the fact adds costly legal fees. There are a few strategies that doctors can apply before and after signing a contract to avoid competition problems. A non-competition clause, also known as a competition restriction contract or clause, is a provision of a contract that prevents one party from competing with another party by issuing 1) in a given area, 2) within a given geographic area and 3) for a specified period of time. A well-written non-competition obligation prevents a physician from working in a given geographic area around the employer or the employer`s hospital relations and for a prescribed period of time after the end of the medical profession. Hospitals and medical practices will not survive without doctors. A doctor could certainly take his reputation and loyal patients and leave a practice.
A non-competition clause is often an obstacle in this regard. Since agreements on the absence of non-competition by physicians may restrict patients` right to treatment by the physician of their choice, there is generally a case that expects a non-competition agreement to harm the public. There may be cases where the application of a non-competition agreement could lead to a shortage of physicians in a given field or discipline. Or it could prevent a patient from being able to continue treatment without interruption. This type of negative effect is even recognized and addressed in the American Medical Association Code of Medical Ethics. In short, employers may take steps to protect legitimate business interests, but should not unduly restrict the freedom of current or former workers to earn a living.