Question 1

What is a typical healthcare non-compete for physicians?

Accepted Answer

Typical terms: 2-3 years, 5-50 mile radius, "competing medical practice" defined broadly. Healthcare companies argue: established patient relationships, referral networks, medical records access, continuity of care. These arguments are strong — healthcare non-competes are generally enforceable. However, "competing medical practice" can be too broad. Negotiate: "Exclude direct competitors (non-overlapping services)," "Reduce radius to 5 miles," "Reduce duration to 1 year."

Question 2

Are healthcare non-competes enforceable?

Accepted Answer

Generally yes. Unlike tech (California bans them), healthcare non-competes are enforceable in most states if reasonable. Courts recognize: (1) established patient relationships, (2) continuity of care importance, (3) referral networks, (4) practice goodwill. However, "reasonable" still matters — a 3-year statewide non-compete can be struck down as overly broad. Enforceability varies by state.

Question 3

What factors do courts consider for healthcare non-competes?

Accepted Answer

Courts look at: (1) Duration (2 years OK, 3+ years risky), (2) Geographic scope (5 miles reasonable in urban area, 50 miles in rural area), (3) Patient relationships (established patients = stronger claim), (4) Legitimate business purpose (continuity of care, referral relationships). Healthcare courts are more favorable to employers than tech courts.

Question 4

Can I negotiate patient relationship carve-outs?

Accepted Answer

Possibly. Propose: "Non-compete applies to new patients acquired during employment, but not to existing patients who follow me." This acknowledges patient choice and doctor-patient relationship. Most healthcare companies resist this but it's worth proposing. Alternatively: "Patients can choose to follow me without triggering non-compete."

Question 5

How should I negotiate a healthcare non-compete?

Accepted Answer

Leverage points: (1) Reference state law on reasonableness. (2) Propose shorter duration (1-2 years instead of 3). (3) Limit geography (5 miles instead of 50). (4) Exclude existing patients. (5) Define "competing practice" narrowly. (6) Ask why they need 3 years (usually can't articulate valid reason). Healthcare employers often expect negotiation.

Non-Compete Clauses for Healthcare Physicians: Protect Your Practice

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