Physician urges ban on non compete clauses to improve healthcare access

Non-compete clauses in healthcare are under fire for their detrimental impact on both physicians and the communities they serve. During a recent meeting of the House Workforce, Labor, and Economic Development Finance and Policy Committee, a physician highlighted how these restrictive agreements limit physician mobility, restrict patient choice, and worsen physician shortages, particularly in underserved and rural areas.

The physician, who previously chaired a family medicine department, shared personal experiences illustrating the negative consequences of non-compete agreements. "When enforced, they create unnecessary barriers that can disrupt continuity of care," they stated, emphasizing that patients often struggle to find new providers when their doctors are forced to leave their practices due to these clauses. This disruption can lead to delays in treatment and worsened health outcomes, especially in already overburdened healthcare systems.

The testimony pointed out that non-compete agreements disproportionately affect younger physicians, who often lack the resources to challenge such contracts. "These agreements can suppress wages, limit career advancement, and discourage physicians from practicing in the very communities that need them the most," the physician explained.

As healthcare consolidation continues, larger health systems impose extensive non-compete clauses that can restrict a physician's ability to practice within vast areas. For instance, a physician could be barred from working in the entire Twin Cities area or even larger distances in rural regions. This not only complicates hiring practices but also disrupts patient care continuity.

With physician burnout at an all-time high, the physician urged lawmakers to reconsider these restrictive agreements. "We should be working to retain and support healthcare providers, not trapping them in agreements that stifle competition and harm public health," they concluded, calling for policies that promote a more flexible, patient-centered healthcare system. The discussion underscores a growing concern about the balance between protecting healthcare organizations and ensuring accessible, quality care for patients.