Non-Competition Provisions
When a physician signs an employment agreement that includes a non-competition provision, the doctor should be aware that such an agreement will limit his/her opportunity to practice medicine in the future. Even when a radius seems small on paper (i.e. five miles or ten miles), the actual area covered by the agreement may encompass the majority of hospitals or employers in an urban area. Furthermore, many of these provisions exclude you from working for a competitor even when your employment is terminated by the employer without cause.
A non-solicitation provision can have a similar effect. Employers often draft these provisions in a way that makes it difficult to promote yourself when you are forced to secure new employment. If you are restricted from sending announcements or initiating any contact whatsoever with former patients, can you really build a new practice?
If you are negotiating an employment contract with a large institution, it will likely be difficult to negotiate a narrower application of the restrictive covenants. However, this should not deter you from making some effort. At a minimum, you should request that the restrictive covenants be nullified if your employment is terminated without "cause." In addition, you should be careful that "cause" is clearly defined in the agreement so that there is no question as to whether you may promote yourself.
