| SB 0713 | Clarifies the use of noncompete clauses in contracts between physicians and hospitals |
| Sponsor: | Singleton | |||
| LR Number: | 2660S.01P | Fiscal Note: | 2660-01 | |
| Committee: | Labor and Industrial Relations | |||
| Last Action: | 05/15/02 - Defeated on H Third Reading | Journal page: | H2124-2125 | |
| Title: | ||||
| Effective Date: | August 28, 2002 | |||
SB 713 - This act clarifies the use of non-compete clauses in contracts between physicians and hospitals.
A new Section 334.113 is created and makes covenants not to compete enforceable except when they are part of a physician's contract with a not-for-profit health services corporation as defined in section 354.010. Covenants with other health care facilities are enforceable as long as they:
1. Do not deny the physician access to a list of patients the physician had seen within a year of termination;
2. Provide access to patient medical records with the patient's consent and in an accessible format;
3. Provide for a buy out of the covenant by the physician at a reasonable price; and
4. Provide that the physician will not be prohibited from providing continuing treatment to specific acutely ill patients after the contract has terminated.
This act is similar to SB 558 (2001).
ERIC ROSENKOETTER
HA 1 - A COVENANT NOT TO COMPETE IS NOT ENFORCEABLE IF PART OF AN AGREEMENT WITH A HOSPITAL OR PHYSICIAN GROUP PRACTICE.
HA 2 - NO TIME LIMITATION ON A PHYSICIAN'S ACCESS TO A LIST OF PATIENTS.
HA 3 - PHYSICIANS SUBJECT TO A COVENANT NOT TO COMPETE ARE CONSIDERED EMPLOYEES OF THE HOSPITAL FOR LIABILITY PURPOSES.