The covenant also cannot unduly burden the general public or the individual physician.Ī non-competition covenant is considered reasonable in scope if itâ¨is limited to the services that the physician actually provided while employed by the practice. States that are willing to enforce physician non- competition covenants typically will only do so if the covenant is reasonable in scope, duration, and geographic area. Most courts have recognized that reasonable physician restrictive covenants serve an important purpose and therefore are, for the most part, legally enforceable in most states. Restrictive covenants temporarily control how physicians can practice, and how they can obtain new patients. These covenants also restrict physicians from soliciting his or her former practice’s referral sources or employees. Non-solicitation covenants preclude a physician who leaves a practice from soliciting patients to join the physician’s new practice. Non-competition covenants prevent a physician who leaves a practice from providing services in close proximity to his or her former practice for a set period of time. But keep in mind these covenants are, for the most part, enforceable. BreitenbachThe mention of restrictive covenants provokes an almost visceral reaction among most physicians.
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May 2023
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