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Committee advances bill banning physician noncompete clauses after amendment; proponents say it will help rural access

2139750 · January 22, 2025
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Summary

The Senate Health Committee advanced Senate Bill 475, which would prohibit new noncompete agreements for physicians; sponsors and supporters argued the change will improve physician mobility and rural access, while some members urged caution about effects on small hospitals.

The Senate Health Committee voted to advance an amended version of Senate Bill 475, a measure that would bar employers and physicians from entering into noncompete agreements in new contracts.

Sponsor Senator Bush said the prohibition aims to ease workforce mobility for physicians and address shortages in rural counties. "We have severe doctor shortage," Senator Bush said, citing cases in which noncompetes prevented physicians from continuing to practice in their communities.

Supporters included Secretary Gloria Sachdev of the Indiana Family…

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