Court upholds noncompete clause in physician contract

November 1, 2008

A Kansas appeals court ruled that a noncompete clause in the contract of a doctor employed by a practice of 200 multispecialty physicians was enforceable.

A Kansas appeals court ruled that a noncompete clause in the contract of a doctor employed by a practice of almost 200 multispecialty physicians was enforceable. The clause restricts a family physician, Michelle M. Louis, DO, from practicing for 3 years in the county where the group she left is located unless she pays the clinic 25% of her earnings during that period. According to American Medical News (8/4/2008), the court decided that the contract provision was valid because the restrictive covenant:

American Medical Association policy states that noncompete covenants "restrict competition, disrupt continuity of care, and potentially deprive the public of medical services." Most states consider noncompete clauses legal, however, though eight states have outlawed or significantly restricted such clauses.