While you may think that the non-compete provision in your employment agreement is just a standard term that can be addressed when the time comes for you to move on, it is in fact a powerful tool to restrict you from practicing medicine in a specified geographic area.
Earlier this week it was reported on the Indianapolis Business Journal at IBJ.com that Indiana University (IU) Health Morgan Hospital has file suit against a primary care physician alleging that she signed a non-compete agreement with the hospital, and that she is now attempting to breach that agreement by moving her practice to Franciscan St. Francis Health. IU Health is seeking a preliminary injunction to stop the physician's move.
Even when a non-compete is unenforceable, being sued by a hospital with deep pockets is a strong deterrent to violation. Litigation can, and often does, take years. When accepting a new position, many physicians don't even contemplate the possibility that their employment agreement might interfere with future employment options.
Many of the physicians we work with do not believe that the employer who is hiring them might someday sue them for trying to leave. Before you sign a physician employment agreement, if the hospital or practice group tells you "we never enforce those provisions," ask them to put that in the agreement.
