Priority: Improve parameters of noncompetes such that they balance employed physicians’ ability to practice medicine and promote continuity of care, while respecting employer physicians’ ability to protect legitimate business interests.
Background: Over the past few years, the Texas Medical Association has evolved a policy on noncompete agreements that factors the spectrum of physician practices into the equation.
“The goal here is to protect the physician employees, so they don’t have to disrupt their entire life just to change jobs, and protect the physician employer, smaller groups or larger groups, because there are all kinds of economic costs associated with running a practice,” said Tilden Childs, MD, immediate past chair of TMA’s Council on Legislation.
Nationally, anywhere from 37% to 45% of physicians operate under noncompete clauses in employment contracts, according to American Medical Association data. While nearly three in four Texas physicians are now employed, compared to 56% just five years ago, many TMA members still maintain independent practices and operate as both physicians and employers of other physicians.