Non-compete Agreements - The Medical Field

Are Indiana doctors restricted by a non-competition agreements?

I say that depends on the case. Indiana lacks any bias favoring restrictive employment covenants in general, and using covenants not to compete with professionals raises some specific objections.

Take a look at Duneland Emergency Physician’s Med. Group, P.C. v. Brunk, 723 N.E.2d 963. (Ind. Ct. App. 2000) (Microsoft Word format).

Interesting to me (and, hopefully, you) was find the following articles online. I suspect Indiana's answer differs from some states.

If are in Indiana and need an attorney to help you with a non-compete agreement, please contact me.

Contracts and Emergency Medicine: Restrictive Covenants. Which has some great advice I wish more of my clients would heed:

These points are frequently moot because most physicians cannot sustain a lawsuit against a corporate entity or hospital for any given length of time, especially without an income while contractual terms are being ironed out in court. It is best to avoid litigation in the first place, and to get these clauses out of the original contract. EPs in general have different issues from other specialties. Covenants invalidated based on public policy tend to be invalidated because the field is highly specialized or geographically underserved.

Update On Covenants Not To Compete: Will They Survive In The Healthcare Industry?:

"Covenants not to compete undergo considerable scrutiny in all industries. In healthcare, however, proponents of covenants not to compete must argue for enforcement of the covenant against the countervailing weight of the rights of patients to be treated by their own physicians at the hospitals of their choice, as well as the community need for the type of medical service the physician provides. It has been argued that the public interest in supporting those hospitals willing to make a financial commitment to establish a medical specialty practice is given little consideration in many recent cases, where courts have voided the covenant not to compete. Courts around the country are starting to internalize this point of view, and increasingly are balancing the equities of the particular facts and circumstances to determine whether the restrictive covenant should be upheld."

AAEM WHITE PAPER ON RESTRICTIVE COVENANTS:

The American Academy of Emergency Medicine (AAEM) opposes the use of postcontractual restrictive covenants, or “non-compete clauses,” in physician contracts. Some contract holders and hospital administrators control emergency physicians through exploitative contractual provisions. These provisions include restrictive covenants that control where emergency physicians may work, violating their professional rights and effectively preventing them from advocating for their patients. The threat of termination from a hospital medical staff as well as a restrictive covenant, may prevent physicians from advocating for their patients if the hospital or contract holder opposes such advocacy.

No, I really do not see Indiana changing its position on using non-compete agreements against physician employees.

Update 4/6/08: I finally got around to posting on Central Indiana Podiatry v. Kenneth Krueger. See: Central Indiana Podiatry v. Kenneth Krueger - The Indiana Supreme Court Speaks and Thoughts on Central Indiana Podiatry, Non-Competes, Garden Leave, and Physician Employment Contracts.