Pennsylvania has passed a new law prohibiting the enforcement of certain noncompete covenants entered into by health care practitioners and employers. An agreement that is entered into between an employer and a health care practitioner which has the effect of impeding the ability of the health care practitioner to continue treating patients or accepting new patients, either practicing independently or in the employment of a competing employer after the term of employment, is considered void and unenforceable.
Employers may however, enforce a noncompete covenant if it is no more than one year in duration, provided that the health care practitioner was not involuntarily terminated by the employer. Noncompete covenants are also valid if they are tied to the sale of the employer’s business.
Within 90 days of the departure of a health care practitioner from an employer, the employer must notify the health care practitioner’s patients seen within the past year of the following:
- The health care practitioner’s departure;
- If the patient chooses to receive care from the departed health care practitioner or another health care practitioner, how the patient may transfer their health records to a health practitioner other than with the employer;
- That the patient may be assigned to a new health care practitioner within the existing employer if the patient chooses to continue receiving care from the employer.
The law is effective January 1, 2025.
