Senate bans many non‑compete clauses at UIHC, expands list of covered professions

The Senate adopted an amendment to House File 2254 and passed the bill prohibiting the University of Iowa Hospitals and Clinics from including non‑compete clauses in certain employment contracts.

Senator Dickey, sponsor of the bill, said the measure applies to employment contracts entered into, extended or renewed on or after the bill's effective date and initially targeted physicians; Senate amendment 51‑41 expands the prohibition to "advanced registered nurse practitioners, licensed practical nurses, pharmacists, physician's assistants, and registered nurses" and other specified professions. Senator Donoghue described the amendment as "a good amendment that opens up the non compete prohibition for multiple medical practitioners" and said it should help rural Iowans obtain more providers.

Senator Dickey argued many UIHC clinicians had told him non‑competes limit where they can practice and contribute to workforce shortages, citing examples of specialty departures and long wait times. "This bill will help fix that," he said, calling the bill "pro rural health care".

The amendment was adopted by voice vote and the Senate subsequently passed the bill by roll call; the clerk recorded 43 ayes and 2 nays on final passage.

What happens next: The measure will be messaged; if enacted, the UIHC would be prohibited from including the specified non‑compete restrictions in covered contracts going forward.

Quote: "This non‑compete prohibition...will allow more people to go out to those areas and help out," Senator Donoghue said in support of the amendment.

Provenance: Floor debate and amendment adoption are documented in transcript segments listed in provenance.