Indiana House approves ban on noncompete agreements for some doctors

Indiana lawmakers banned noncompete agreements for primary care physicians two years ago. The House-approved bill expands the ban to include all doctors employed by hospitals and their affiliated entities. Supporters of the move say Senate Bill 475 could help with the state’s shortage of doctors.

Noncompete agreements block workers from leaving for a similar job within the same area for a certain period of time. Lawmakers already banned noncompete agreements for primary care doctors. This bill extends the ban to alldoctors employed by hospitals and their affiliated entities. It excludes businesses that are independent practices.

Rep. Ethan Manning (R-Logansport) is one of the bill’s sponsors. Manning said Indiana should be a state where doctors can practice medicine and take care of Hoosiers regardless of who they choose to work for.

“We are no longer going to let outdated and anti-competitive business practices keep Hoosiers from seeing their doctors,” Manning said.

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The ban on physician noncompete agreements would apply to new contracts signed after July 1. The bill now goes back to the Senate, which can send it to the governor or take it to conference committee for more work.

Timoria is our labor and employment reporter. Contact her at [email protected].