Healthcare Non Compete Agreement Template for United States

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Key Requirements PROMPT example:

Healthcare Non Compete Agreement

"I need a Healthcare Non Compete Agreement for a senior cardiology specialist joining our medical practice in Florida, with a two-year restriction period and a 25-mile radius restriction, to be effective from March 1, 2025."

Document background
Healthcare Non-Compete Agreements are essential tools for medical practices and healthcare organizations to protect their legitimate business interests while balancing patient care needs. These agreements are particularly complex due to varying state regulations and recent federal scrutiny, including the FTC's proposed ban on non-competes. The document typically specifies geographic restrictions, time limitations, and scope of prohibited activities, while ensuring compliance with state medical practice acts and federal healthcare regulations. Special attention must be given to patient access to care and continuity of treatment.
Suggested Sections

1. Parties: Identification of the healthcare employer and employee

2. Background: Context of the agreement and relationship between parties

3. Definitions: Key terms used throughout the agreement including restricted business activities, territory, and competitive activities

4. Scope of Restrictions: Detailed description of specific activities prohibited during and after employment, including patient care, medical procedures, and business activities

5. Geographic Limitations: Physical boundaries of the non-compete restriction with specific radius or territory definitions

6. Duration: Time period for which restrictions apply post-employment

7. Consideration: Value provided in exchange for the non-compete agreement, including compensation or continued employment terms

8. Confidentiality Obligations: Provisions regarding protection of confidential information, trade secrets, and patient information

9. Enforcement and Remedies: Legal remedies available in case of breach, including injunctive relief and damages

Optional Sections

1. Patient Transition: Procedures for transitioning patient care upon termination, including notification requirements and transfer of records

2. Medical Records Access: Terms for accessing and maintaining patient records in compliance with HIPAA and state regulations

3. Research Continuity: Provisions for handling ongoing research projects and intellectual property rights

4. Professional Development: Provisions regarding continuing medical education and maintenance of professional licenses

Suggested Schedules

1. Schedule A - Protected Territory: Detailed map or description of geographic restrictions including specific addresses and radius measurements

2. Schedule B - Competitor List: Comprehensive list of specific competitors or types of healthcare facilities covered by the agreement

3. Schedule C - Specialty Services: Detailed list of restricted medical services, procedures, or specialties covered by the agreement

4. Appendix 1 - State-Specific Requirements: Additional provisions and modifications required by applicable state laws and regulations

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Industries

Sherman Antitrust Act: Federal antitrust law that prohibits anticompetitive business practices and must be considered when drafting non-compete restrictions

Federal Trade Commission Act: Federal law governing unfair competition practices, including the FTC's 2023 proposed rule to ban non-compete agreements

Defend Trade Secrets Act: Federal law providing uniform protection for trade secrets that may be relevant to confidentiality provisions in healthcare non-competes

HIPAA: Health Insurance Portability and Accountability Act governing patient privacy and data protection requirements in healthcare settings

Medicare/Medicaid Regulations: Federal healthcare program requirements that may impact permissible restrictions on medical practice

State Non-Compete Laws: Varying state-specific regulations on non-compete enforceability, including complete prohibitions in some states like California

State Medical Practice Acts: State-specific laws governing medical practice and professional conduct that affect permissible restrictions on healthcare providers

State Trade Secret Laws: State-specific protections for confidential business information that complement federal trade secret protection

FTC Proposed Non-Compete Ban: January 2023 proposed rule by the Federal Trade Commission to prohibit non-compete agreements nationwide

Healthcare Worker Protection Laws: State-specific pandemic-era protections for healthcare workers that may affect mobility and practice restrictions

Patient Access Considerations: Public policy requirements ensuring patient access to care is not unduly restricted by non-compete provisions

Medical Staff Privileges: Considerations regarding how non-compete agreements interact with hospital privileges and medical staff relationships

Continuity of Care Requirements: Legal and ethical obligations to ensure continuous patient care during transitions or practice restrictions

Professional Medical Ethics: Ethical guidelines from medical boards and associations that impact permissible practice restrictions

Geographic Restrictions: State-specific limitations on permissible geographic scope of non-compete provisions in healthcare

Duration Restrictions: State-specific limitations on time duration of non-compete provisions in healthcare settings

Scope of Practice Restrictions: Legal limitations on what activities and practices can be restricted in healthcare non-compete agreements

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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