Beginning on January 1, 2025, employment-based non-compete covenants will be unenforceable against physicians, certified registered nurse practitioners, physician assistants and certified registered nurse anesthetists (each, a “practitioner”) in Pennsylvania, unless the non-compete covenant is for less than one year in duration and the practitioner was not “dismissed” by the employer. The Fair Contracting for Health Care Practitioners Act does allow the employer to recover certain reasonable expenses related to “relocation, training and establishment of a patient base” upon a practitioner’s termination (if he or she is not “dismissed” by the employer).
In addition, the Act requires that an employer notify patients who had an ongoing outpatient relationship with a departing practitioner within 90 days of his or her departure, giving the patient guidance on how they can transfer their records to another practice or begin receiving treatment from another practitioner within the employer’s practice.
There remain many unanswered questions about the Act, including, but not limited to, undefined terms and penalties for noncompliance with the notice provisions. Our Fox Rothschild Labor and Employment Group issued an Alert with additional questions on the Act here.
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