New proposed law declaring Physician Non-Compete restrictions to be invalid.  

Florida House Bill 11 - For the 2024 Legislative Session - By Representative Joel Rudman

A recent and new bill has been introduced, that would declare physician non-compete restrictive covenants to have "no legitimate business interest".  This has been introduced by Representative Joel Rudman (Republican) Dr. Rudman's Political Website.  

Why are Physician Non-Compete Restrictions Bad for Healthcare?

Non-compete agreements can limit a physician's ability to practice medicine in a certain area or for a certain period of time after leaving a particular job. This can have several negative impacts on both physicians and patients.

1. Patient Care Continuity: Non-compete agreements can disrupt the continuity of care for patients. If a physician leaves a practice, patients may prefer to continue seeing that physician, but a non-compete agreement could prevent that. This can lead to decreased patient satisfaction and potentially lower quality of care.
2. Access to Healthcare: If a physician is prohibited from practicing in a certain area due to a non-compete agreement, it can limit the availability of healthcare providers in that area, particularly if it's already underserved.
3. Physician Autonomy: Non-competes can limit the freedom of physicians to move between jobs and locations. This could lead to less job satisfaction, and potentially, burnout.
4. Innovation and Competition: Non-competes can limit competition, which in turn can stifle innovation in healthcare practices.
5. Increased Costs: Non-competes can potentially lead to higher healthcare costs. If there is less competition in a certain area because of non-compete agreements, prices for healthcare services could rise.

However, it should be noted that non-compete agreements can also have benefits for healthcare organizations, such as protecting investments in physician recruitment and training, and safeguarding patient lists and other proprietary information. But many legal jurisdictions, including some states in the U.S., have limitations or outright bans on non-compete agreements in the medical field due to the potential negative impacts on patient care and access to healthcare services. To date, Florida has not banned non-compete agreements in the medical field, unless it is in a extremely rural county where only a couple of practitioners practice. 

If a person has the right to choose their lawyer, then why not a doctor.  There should be no  non-competes for physicians! 

Click here to see House Bill 11. 

The Argument from the Business (dark) side to Keep Non-Compete Provisions Restricting Physicians:

 Non-compete agreements can limit a physician's ability to practice medicine in a certain area or for a certain period of time after leaving a particular job. This can have several negative impacts on both physicians and patients.

1. Patient Care Continuity: Non-compete agreements can disrupt the continuity of care for patients. If a physician leaves a practice, patients may prefer to continue seeing that physician, but a non-compete agreement could prevent that. This can lead to decreased patient satisfaction and potentially lower quality of care.
2. Access to Healthcare: If a physician is prohibited from practicing in a certain area due to a non-compete agreement, it can limit the availability of healthcare providers in that area, particularly if it's already underserved. The argument being that employers would be less willing to recruit physicians from far away, out of fear that they could be poached. 
3. Innovation and Competition: Non-competes can limit competition, which in turn can stifle innovation in healthcare practices. The business argument being that if there is to be innovation, there has to be the ability to protect one's turf or territory, and it is expensive to bring about innovations.  So employers are less likely to invest in innovation. 
4. Increased Costs: Non-competes can potentially lead to higher healthcare costs. The business argument being that If it becomes more expensive to acquire patients and to retain physicians, that will drive up business costs that ultimately will affect patients.  

However, Florida is a highly populated stated, and these business arguments are antiquated.  It is time to support House Bill 11.  

For more information, visit our website: Mirza Healthcare Law Partners

If you have any questions, call Ben Mirza at Cell/Text (954)445-5503, [email protected]. 

Ben Assad Mirza, Esq., LLM, MPHA, Formerly CPA and CHC

Mirza|Healthcare Law Partners

Fort Lauderdale, Florida

Cell/Text: (954)445-5503 (Primary)

[email protected]