House subcommittee backs bill to bar physician noncompete clauses, citing workforce and access concerns

A South Carolina House subcommittee on [date not specified] voted to give House Bill 4767 a favorable report to the full committee after hearing testimony from physicians, health systems and hospital representatives who said noncompete clauses limit patient access and worsen workforce shortages.

Prisma Health Medical Group testified first, represented by Dr. John Gleason, who said the state faces a persistent physician shortage and that noncompete clauses can force physicians to leave communities when startups or competing employers fail. "We just need to agree that there's a national physician shortage," Gleason said, adding that restrictions that push physicians out of rural and underserved areas are "not good for South Carolina, for access to care, for our patients, for health outcomes."

Jay Ragley of the South Carolina Health Policy Forum backed the bill as a protection of patient choice and the doctor–patient relationship, noting that a similar approach was adopted in the South Carolina Senate amendment during certificate-of-need (CON) repeal in 2023. Dr. Cleve Hamm, a retired radiologist and member of the South Carolina Medical Association board, testified the measure balances patients' rights with legitimate business interests and urged time-limited protections where reimbursement for recruitment or relocation is at issue.

Independent and direct primary-care physicians described concrete local impacts. Dr. Jessica Mendelson, who runs an independent practice in Fort Mill, said noncompetes had forced physicians she recruited to establish services miles from patients, increasing travel times and delaying care. Justin Smith, an orthopedic surgeon, said his employer is enforcing a "one-year, 30-mile" restriction that would push many of his patients to travel to Columbia or out of state.

Hospital representatives urged clarifications. Austin Smallwood of the Hospital Association asked the committee to allow contracts to include repayment provisions up to 12 months of salary to recoup training and recruitment costs, and suggested an effective date of Jan. 1, 2027, to align with implementation timelines for CON repeal.

After testimony and brief committee discussion, Chairwoman Davis called the question to report HB 4767 "favorable to the full committee." Clerk Sherry called the roll; Mister Beach voted "Aye," Miss Davis "Aye," Mister Montgomery "Aye," Mister Sessions "Yes," and Miss Waters "Aye." The chair stated, "All are in favor."

What happens next: HB 4767 will be reported to the full committee for further consideration. Supporters say the bill would expand physician mobility and competition; hospital representatives requested specific language on permitted repayment amounts and a delayed effective date. The subcommittee did not enact floor amendments during the morning session.

Sources: Committee proceedings and testimony before the South Carolina House subcommittee.